Ringgit weaker against greenback as US debt ceiling resolution faces hurdles

  • Forex
  • Wednesday, 31 May 2023

KUALA LUMPUR: The ringgit traded weaker against the US dollar in the early session today amidst the lack of conviction on the resolution of the United States (US) debt limit impasse.

At 9.05 am, the local note eased to 4.6025/6060 versus the greenback compared with Tuesday’s closing of 4.6005/6045.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the US dollar/ringgit pair is likely to be stuck at the RM4.60-level throughout the day.

"While the US Federal Reserve may not be so aggressive in tightening their monetary stand, issues surrounding the US debt limit continues to hog the limelight.

"Factions within the Republican party have gone the extra mile in criticising the debt deal, indicating that voting for the passage may not be smooth sailing,” he added.

In the meantime, the ringgit was traded lower against a basket of major currencies.

It eased to 3.2941/2968 against the Japanese yen from 3.2821/2852 at Tuesday’s closing, declined against the euro to 4.9399/9436 from 4.9327/9369, and depreciated versus the British pound to 5.7168/7211 from 5.7129/7179 yesterday.

The local note was also traded lower against other Asean currencies.

The ringgit fell against the Thai baht to 13.2496/2661 from 13.2251/2427 and slid against the Singapore dollar to 3.4067/4096 from Tuesday’s 3.4035/4070.

It declined against the Indonesian rupiah to 307.0/307.5 from 306.9/307.4 and decreased against the Philippines’ peso to 8.18/8.19 from 8.16/8.17. - Bernama

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