Concerns over China's economy weigh on ringgit at close

  • Forex
  • Tuesday, 06 Jun 2023

A money changer holding the ringgit and US dollar in a shopping mall.

KUALA LUMPUR: The ringgit closed lower against the US dollar today, weighed down by concerns over China's economic and financial stability as well as weaker oil prices, said an analyst.

At 6 pm, the local note traded lower at 4.6055/6100 versus the greenback compared with Friday’s closing of 4.5745/5785.

The market was closed on Monday, June 5, 2023, in conjunction with the birthday of the Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah.

SPI Asset Management managing director Stephen Innes said despite the US dollar weakening after a softer-than-expected US Institute of Supply Management (ISM) print, the ringgit could not capitalise on it due to the currency’s strong connection to the China risk sentiment.

"The more so as the Chinese yuan is struggling due to the lack of policy support, and weaker oil prices are not helping matters either,” he told Bernama.

According to a news report, oil prices gave up most of the prior session's gains following an announcement by the world's top exporter, Saudi Arabia, that it would further cut output.

At the time of writing, Brent crude was down 1.63 per cent at US$75.46 per barrel.

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

It fell to 3.3050/3085 against the Japanese yen from 3.2957/2989 at Friday’s closing, but rose vis-a-vis the euro to 4.9237/9286 from 4.9254/9297 previously and appreciated versus the British pound 5.7131/7187 from 5.7323/7373.

Meanwhile, the local note was traded mostly lower against other Asean currencies.

The ringgit rose against the Thai baht to 13.2357/2547 from Friday's closing rate of 13.2402/2591, but was lower against the Philippines’ peso at 8.19/8.20 compared with 8.18/8.19 previously.

It also slid against the Singapore dollar to 3.4140/4179 from 3.4026/4059 at the end of last week and weakened versus the Indonesian rupiah to 309.8/310.3 from 305.0/305.5. - Bernama

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Ringgit , US dollar , ISM , Stephen Innes , Yuan , Oil prices


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