KUALA LUMPUR: The ringgit retreated against the greenback on Tuesday despite the weaker US dollar index (DXY) and lower US Treasury yields after the recent downgrade of the credit rating of the United States by Moody’s Ratings.
At 6 pm, the local note eased to 4.2950/3010 versus the greenback from yesterday’s close of 4.2870/2945.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the ringgit had climbed to RM4.2873 in the afternoon session from the previous day’s close of RM4.2908 before ending lower.
"The gains were likely capped as some traders took profit,” he told Bernama.
He noted that the Reserve Bank of Australia (RBA) decided to cut the cash rate by 25 basis points to 3.85 per cent today after it was last reduced in February due to greater uncertainties in the global economic outlook following the tariff shocks of the United States.
"Consequently, the Aussie dollar was weaker against the US dollar by 0.51 per cent to US$0.6424 per Australian dollar. The RBA decision reflects uncertainties surrounding the tariff shocks, which will continue to affect monetary policy decisions across the globe,” he said.
Mohd Afzanizam said today’s data on Malaysia’s exports surprised on the upside when it grew by 16.4 per cent, surpassing the consensus estimates of 7.5 per cent. "While it remains to be seen whether such a trajectory can be maintained in the months to come, the Malaysian economy in the second quarter should be able to grow more than four per cent,” he said.
At the close, the ringgit traded mostly lower against a basket of major currencies.
It was slightly higher vis-à-vis the euro to 4.8340/8408 from yesterday’s 4.8344/8429, but depreciated versus the Japanese yen to 2.9727/9773 from yesterday’s 2.9596/9650, and dipped against the British pound to 5.7428/7509 from 5.7420/7521 previously.
The local note traded lower against its ASEAN peers.
It went down vis-à-vis the Philippine peso to 7.72/7.73 from 7.69/7.71 on Monday, decreased against the Singapore dollar to 3.3153/3202 from 3.3135/3195 and declined against the Thai baht to 12.9856/13.0116 from 12.9630/9924.
It slid against the Indonesian rupiah to 261.6/262.1 from 260.8/261.4. - Bernama
