Ringgit retreats to end lower against US$

KUALA LUMPUR: The ringgit retreated from last week’s gains to close lower against the US dollar today, as risk-averse sentiment prevailed, leading to increased demand for the US dollar.

At 6 pm, the local note decreased to 4.7295/7335 against the greenback from Friday’s close of 4.7115/7155.

Bank Muamalat Malaysia Bhd chief economist and social finance head Dr Mohd Afzanizam Abdul Rashid said the current focus is on the Israel-Palestine conflict, and how this situation will develop is uncertain.

“However, the prolonged tension in the region is likely to drive up crude oil prices due to the proximity of major oil producers. This conflict may also involve key global players, including the United States, Europe, Iran, and other Middle Eastern countries.

“In summary, a risk-averse sentiment prevails, leading to increased demand for the US dollar. Indeed, the US Dollar Index (DXY) has seen a 0.24 per cent increase, reaching 106.295 points, while the US dollar to ringgit exchange rate remains at RM4.7285, just below the immediate resistance level of RM4.7495,” he told BK.

He expects the ringgit to remain under pressure in the near future as the markets closely monitor developments in the Israel-Palestine conflict.

The ringgit traded lower versus a basket of major currencies.

It went down against the yen to 3.1716/1745 from 3.1612/1641 at Friday’s close, declined against the euro to 4.9811/9853 from 4.9720/9763 and depreciated vis-a-vis the British pound to 5.7634/7682 from 5.7494/7543.

The local note traded mixed against other Asean currencies.

It increased versus the Philippine peso at 8.30/8.31 compared with Friday’s close of 8.32/8.33 and was up against the Indonesian rupiah at 301.3/301.7 from 301.7/302.1 previously.

It traded lower against the Thai baht to 12.7435/7588 from 12.7200/7367 on Friday and weakened against the Singapore dollar to 3.4542/4574 from 3.4458/4493 previously. – BK