KUALA LUMPUR: The ringgit closed higher against the US dollar today in tandem with regional currencies as the greenback retreated from recent three-month peaks although staying firm hovering just below its strongest levels since early November.
The Asian currencies were also supported by the expectation of China's strong economic measures to support its ailing stock market, dealers said.
At 6 pm, the ringgit rose to 4.7570/7645 against the US dollar from Tuesday's closing rate of 4.7655/7700.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit was generally weaker against the US dollar today, with the local unit trading at a height of RM4.7655 against the greenback in the morning session.
However, the local currency gained its traction towards the end of the day, he shared.
He also noted that Malaysia’s Industrial Production Index (IPI) came in weaker than expected, and slid by 0.1 per cent in December owing to a persistent decline in the export-oriented manufacturing sector.
"This would mean that Malaysia’s external demand looks challenging in the final quarter of 2023. Furthermore, anxiety over China’s economy may have also contributed to the risk-off mode which leads to a weaker ringgit.
"Also, the Bank Of Thailand (BOT) has decided to maintain its benchmark rate unchanged at 2.50 per cent although it was not unanimous with two out of five members voting for a rate cut. On that note, a possible pivot in Asia’s monetary policy would result in a stronger US dollar, the way we see it,” he told Bernama.
Meanwhile, the ringgit traded lower against a basket of major currencies.
It decreased vis-a-vis the Japanese yen to 3.2159/2212 from 3.2050/2082 at Tuesday’s close, depreciated against the British pound to 6.0095/0190 from 5.9769/9825 previously, and slipped versus the euro to 5.1233/1314 from 5.1124/1173.
The local note was also traded lower versus other Asean currencies.
The ringgit declined against the Singapore dollar to 3.5415/5474 versus 3.5397/5433 on Tuesday and was easier versus the Thai baht to 13.3650/3917 from 13.3544/3726.
It was also lower against the Indonesian rupiah at 304.2/304.8 compared to 302.9/303.3 on Tuesday and slipped versus the Philippine peso to 8.50/8.52 from 8.48/8.49 yesterday. - Bernama
