Ringgit Slips Against Greenback On Profit-Taking Ahead Of US Economic Data Release

By Durratul Ain Ahmad Fuad

KUALA LUMPUR, Aug 26 (Bernama) -- The ringgit ended lower against the American dollar on Tuesday on profit-taking ahead of the release of US economic data later today and toward the end of the working week.

At 6 pm, the local note slid to 4.2160/2210 versus the US dollar from yesterday’s close of 4.2045/2105.

UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said the US Conference Board consumer confidence report is due later today, followed by a revision to US second-quarter gross domestic product (GDP) on Thursday and the closely watched core Personal Consumption Expenditures (PCE) inflation print on Friday.

“Adding to this, the US Federal Reserve (Fed) Governor Christopher Waller is scheduled to deliver a speech on Thursday. Having voted for a rate cut in July and regarded as a leading contender to succeed Jerome Powell as Fed Chair next May, his comments on monetary policy will carry particular weight for markets,” he told Bernama.

The US Conference Board consumer confidence measures the level of consumer confidence in economic activity.

Meanwhile, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said news over the possible termintation of Fed governor Lisa Cook was in the spotlight. 

“It remains to be seen whether such move is legitimate and the possible contestation by Lisa Cook could draw more attention to White House-Fed dynamics,” he said, adding that the drama could weigh on the dollar.

“The prospect of a lower US dollar is increasing and by extension, the ringgit could appreciate against the US dollar in the mid to long term. Basically, (US President) Trump’s economic policies such as the tariff, the One Big Beautiful Bill Act (OBBBA), the deportation of immigrants and the undermining of Fed independence seems likely to be detrimental to the US economy and the US dollar,” he added.

Despite that, Mohd Afzanizam said the ringgit was weaker against the US dollar today as traders might have locked in some gains ahead of the US inflation report on Friday. 

At the close, the ringgit settled mostly lower against a basket of major currencies.

It rose versus the euro to 4.9087/9145 from 4.9163/9233 at Monday’s close, but fell vis-à-vis the Japanese yen to 2.8571/8607 from 2.8534/8577, and weakened against the British pound to 5.6827/6895 from 5.6740/6821.

It traded mostly lower against other ASEAN currencies.

The local note inched down versus the Singapore dollar to 3.2786/2828 from yesterday’s 3.2761/2810, went down against the Thai baht to 12.9707/9917 from 12.9561/9801, and slid vis-à-vis the Indonesian rupiah to 258.6/259.0 from 258.5/259.1 previously.

However, the ringgit strengthened against the Philippine peso to 7.38/7.40 from 7.41/7.43 previously.

-- BERNAMA