THE ringgit closed easier against the US dollar today as the greenback rebounded from an over two-month low earlier this week on the back of stronger-than-expected US retail sales data. 

The data for October again prompted uncertainties surrounding the US interest rate path, a dealer said. 

At 6pm, the ringgit eased to 4.6850/6910 against the greenback from yesterday’s close of 4.6695/6755.  

Bank Muamalat Malaysia Bhd chief economist and social finance head Mohd Afzanizam Abdul Rashid said the ringgit was weaker in the morning session at RM4.7175 to the US dollar but improved in the afternoon towards RM4.6890. 

“Market sentiment is still centred on the US Federal Reserve’s next move, which could see US rates nearing their peak. Tomorrow, markets would be focusing on the announcement of Malaysia’s third-quarter Gross Domestic Product – whether the 3.3% growth can be maintained as indicated by advanced estimates,” he told Bernama. 

SPI Asset Management managing director Stephen Innes said the local currency suffered a mild setback at the open as US yields rose overnight on more robust-than-expected US retail sales, but as the day wore on, the yields eased as the markets concluded that the retail sales were far less hawkish when taking the softer Producer Price Index figures into account. 

“Hence, the concern is that markets are now overestimating the chances of multiple Federal Reserve cuts next year, but those concerns are easing as the day wears on,” he shared. 

 In addition, he said, there were positive signs from the Asia Pacific Economic Cooperation meeting in San Francisco that the White House is now adopting a conciliatory approach to China, which eased geopolitical risk and improved local sentiment. 

At the close, the ringgit was traded mostly higher versus a basket of major currencies. 

It advanced against the Japanese yen to 3.0963/1005 from 3.1049/1091 at yesterday’s close and improved vis-a-vis the British pound to 5.8103/8178 from 5.8187/8261 yesterday but slipped against the euro to 5.0832/0897 from 5.0669/0734 previously. 

The local note ended lower against other Asean currencies. 

It depreciated against the Singapore dollar to 3.4737/4784 from 3.4615/4662 yesterday and was lower versus the Philippine peso at 8.40/8.41 compared with 8.36/8.38 previously. 

The ringgit also weakened against the Thai baht to 13.2065/2286 from 13.1713/1935 yesterday and decreased vis-a-vis the Indonesian rupiah to 301.1/301.7 from 300.5/301.1. – Bernama, November 16, 2023.