Ringgit ends lower against US dollar

KUALA LUMPUR: The ringgit ended lower against the US dollar today after Caixin China General Services purchasing managers’ index (PMI) missed expectations by a wide margin, which weighed on local risk markets, said an analyst.

SPI Asset Management managing partner Stephen Innes said the yuan was markedly weaker, and that was dragging the ringgit lower

At 6 pm, the local note fell to 4.6615/6655 against the greenback from Monday’s close of 4.6535/6575.

Innes said, in addition, that the US dollar was getting stronger across the board as global risk sentiment faltered, with inflation expectations rising after oil prices hit a 2023 high overnight.

“While higher oil prices are typically a boon for the ringgit, it is not so if they trigger higher US bond yields. Three Asian economies, South Korea, the Philippines, and Thailand, experienced higher-than-expected inflation readings as a result of higher oil prices, and that too has spooked investors,” he told BK.

China’s Services PMI fell sharply to 51.8 in August, against an expansion of 54.1 in July.

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

It increased against the Euro to 5.0088/0131 from 5.0230/0273 at Monday’s close, improved against the British pound to 5.8534/8585 from 5.8774/8824 and rose against the Japanese yen to 3.1670/1699 from 3.1786/1818.

At the same time, the ringgit traded mostly higher against other Asean currencies.

It appreciated against the Singapore dollar to 3.4238/4272 from 3.4361/4393 at Monday’s close and went up versus the Thai baht to 13.1388/1567 from 13.2089/2259.

However, the local currency was flat against the Indonesian rupiah at 305.2/305.6 from 305.2/305.7 and slightly higher against the Philippine peso at 8.19/8.21 from 8.21/8.23. – BK