Ringgit Ends Lower Against US Dollar, Major Currencies As US Treasury Yields Rise
By Durratul Ain Ahmad Fuad
KUALA LUMPUR, Aug 3 (Bernama) -- The ringgit ended lower against the greenback and other major currencies on Monday, pressured by rising United States Treasury yields and renewed uncertainty over the path of US monetary policy.
At 6 pm, the local currency eased to 4.0935/0975 versus the greenback from last Friday’s close of 4.0835/0875.
SPI Asset Management managing partner Stephen Innes said investors are now turning their attention to a busy US economic data calendar, including the Job Openings and Labour Turnover Survey (JOLTS), ADP employment data and nonfarm payrolls report on August 7.
“The upcoming US labour market data will be critical in determining whether the US dollar has further room to weaken. Nonfarm payrolls remain the week’s key macro risk event,” he told Bernama.
Meanwhile, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit versus the US dollar started on a stronger note, with USDMYR lingering around RM4.0788 in the morning session before gradually moving towards RM4.09 in the afternoon session.
However, he noted that the Japanese yen was showing significant improvement, with US dollar-yen at 156.91 yen after piercing the 160 yen mark in early June, adding that intervention by Japanese government authorities was likely the main factor behind the currency's appreciation.
“The statement by US Treasury Secretary shows the US government is also participating in intervening in the currency market to prop up the value of the yen,” said Mohd Afzanizam.
On Sunday, US Treasury Secretary Scott Bessent, in a post on X, said that the Treasury remains in close contact with Japan's Ministry of Finance and the Bank of Japan, noting that Friday's coordinated foreign exchange actions countered disorderly yen movements.
“We will not hesitate to participate in further joint intervention,” he said.
The ringgit traded lower against a basket of major currencies at the close.
It depreciated versus the Japanese yen to 2.6062/6089 from 2.5520/5548 at last Friday’s close, fell vis-à-vis the euro to 4.7165/7211 from 4.6981/7027, and declined versus the British pound to 5.5053/5107 from 5.4923/4977 previously.
The ringgit also traded lower against regional currencies.
It weakened versus the Thai baht to 12.2663/2827 from 12.2264/2435 at last Friday’s close, declined against the Indonesian rupiah to 227.4/227.7 from 226.6/226.8 previously, edged down vis-à-vis the Philippine peso to 6.72/6.73 from 6.66/6.67, and slipped against the Singapore dollar to 3.1911/1944 from 3.1823/1856.
-- BERNAMA