KUALA LUMPUR: The ringgit traded lower against the US dollar at the start of today’s trading session due to a lack of buying interest as the US Dollar Index (DXY) rebounded following the recent decline in the US dollar.
At 9:05 AM, the ringgit weakened to 4.7140/7190 against the US dollar from Thursday’s close of 4.7070/7110.
Chief Economist at Bank Muamalat Malaysia Bhd, Dr Mohd Afzanizam Abdul Rashid, stated that the DXY surpassed the 105-point mark as traders showed less confidence in the euro due to concerns over the French elections.
“Therefore, the US Dollar/Ringgit pair is expected to remain in a narrow range,” he told Bernama.
Mohd Afzanizam added that the US Federal Reserve’s shift towards promoting economic growth might become more pronounced in the second half of 2024 when the upcoming data is expected to be weaker amidst the current disinflation trend.
“Thus, the positive outlook for the ringgit in the second half of this year is expected to remain,” he said.
The ringgit depreciated against the Japanese yen to 2.9982/3.0015 from Thursday’s close of 2.9945/9972 but appreciated against the euro to 5.0610/0663 from 5.0840/0884 and rose against the British pound to 6.0104/0167 from 6.0160/0211.
Meanwhile, the ringgit traded mixed against other ASEAN currencies.
The local unit slightly fell against the Indonesian rupiah to 289.6/290.1 from Thursday’s close of 289.2/289.6 and declined against the Philippine peso to 8.04/8.05 from 8.03/8.04 previously.
However, the ringgit increased against the Singapore dollar to 3.4880/4919 from 3.4887/4920 and rose against the Thai baht to 12.8185/8370 from 12.8386/8540.
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