THE ringgit ended lower against the US dollar today in tandem with regional currencies on lingering concerns over weaker global economic activities, an analyst said.

At 6pm, the local note weakened to 4.6535/6565 against the greenback from 4.6385/6430 at Friday’s close.

Bank Muamalat Malaysia Bhd chief economist and social finance head Mohd Afzanizam Abdul Rashid said fear of weaker global economic activities was gaining momentum as reflected by the flash Purchasing Managers Indexes (PMIs) for advanced countries.

“Such fear has led to higher demand for safe haven currencies such as the US dollar,” he said.

Afzanizam said while the PMIs have weakened, major central banks appeared reluctant to shift their stance, and this would lead to greater uncertainties.

“Moreover, the latest Consumer Price Index (CPI) print for Malaysia indicates that Bank Negara Malaysia is likely to keep the overnight policy rate unchanged at 3% in September,” he said.

Malaysia’s CPI cooled to 2% in July, the lowest for the year, with the index points recorded at 130.5, as against 127.9 in the same month last year.

The ringgit traded mostly lower against a basket of major currencies.

The local note slid versus the euro to 5.0290/0323 from 5.0054/0103 at Friday’s close and shed against the British pound to 5.8522/8560 from 5.8385/8441, but was slightly better against the Japanese yen to 3.1752/1774 from 3.1757/1790.

At the same time, the ringgit traded mixed lower against other Asean currencies.

It depreciated against the Singapore dollar at 3.4282/4307 from 3.4202/4238 at Friday’s close and slipped against the Indonesian rupiah to 304.2/304.6 from 303.2/303.7.

However, the local currency appreciated vis-a-vis the Thai baht to 13.1936/2088 from 13.2121/2309 on Friday and was firmer against the Philippine peso to 8.19/8.20 from 8.20/8.21. – Bernama, August 28, 2023.