Ringgit Eases Against US Dollar Amid Cautious Market Sentiment

KUALA LUMPUR, July 14 (Bernama) -- The ringgit closed easier against the US dollar on Monday, tracking the performance of its regional peers, as market sentiment remained extremely guarded while the foreign exchange market navigated a period of economic uncertainties.

At 6 pm, the local note weakened to 4.2505/2560 against the greenback from last Friday’s close of 4.2475/2525.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit initially appreciated against the US dollar in the morning session to RM4.2455 but later stabilised at around RM4.25 in the afternoon.

“Asian currencies were also generally weak against the US dollar. The US tariffs continue to hog the limelight as the Donald Trump administration maintained its hawkish stance towards the European Union and Mexico with 30 per cent tariffs.

“At the same time, Trump’s frustration with Russia over the Ukraine war suggests that the fighting could prolong. Trump has indicated that his administration will send Patriot missiles to Ukraine to help it defend against Russia’s missile attacks,” he said.

Brent crude oil is currently trading above US$70 per barrel.

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

It strengthened against the British pound to 5.7305/7379 from 5.7524/7592, improved against the Japanese yen to 2.8858/8897 from 2.8893/8929 but traded marginally lower versus the euro to 4.9693/9757 from 4.9679/9737.

The local note also trended mostly higher against ASEAN currencies.

The ringgit traded slightly higher vis-à-vis the Singapore dollar at 3.3184/3229 from 3.3186/3228, improved against the Indonesian rupiah to 261.5/262.0 from 261.8/262.3 previously, and strengthened versus the Philippine peso at 7.50/7.51 from 7.52/7.53.

But, it dropped against the Thai baht to 13.1213/1439 from 13.0668/0886 from Friday’s close.

-- BERNAMA