KUALA LUMPUR: The ringgit ended lower against the US dollar yesterday as markets adopted a cautious stance ahead of key US economic data releases, says an analyst.
At 6 pm, the local currency fell to 4.0560/0610 versus the greenback from Tuesday’s close of 4.0445/0495.
IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said US labour data as well as the US ISM Services Purchasing Managers’ Index would be closely watched for labour market tightness and services sector momentum.
“Strong prints would reinforce the dollar’s yield advantage and keep the ringgit on the defensive while any downside surprise would quickly unwind dollar support and allow regional currencies to recover,” he told Bernama.
Beyond the near-term volatility, Mohd Sedek said China’s policy stance remains an important stabiliser for the ringgit.
