KUALA LUMPUR: The ringgit slipped further to end the week lower against the US dollar on Friday despite Malaysia’s better-than-expected first quarter gross domestic product (GDP) data, an analyst said.
At 6 pm, the local note fell to 4.4765/4835 versus the greenback from Thursday’s closing rate of 4.4615/4665.
Earlier, Bank Negara Malaysia (BNM) announced Malaysia's economy recorded an expansion of 5.6 per cent in the first quarter of 2023 (1Q 2023), driven mainly by private sector expenditure.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the greenback benefited from its safe-haven status amid the US debt ceiling drama that has put the US government at risk of defaulting on its debts.
"(The drama) gives the impression that the risk of a default by the US government has risen should they decide not to lift the debt ceiling prior to the expiration (of the debt limit) on June 1.
"On that note, currency markets are likely to be risk averse and demand for the safe-haven currency should dominate," he told Bernama.
At the close, the ringgit was traded mostly lower against a basket of major currencies.
It depreciated against the euro to 4.8839/8915 from 4.8751/8805 at the close on Thursday and went down against the Japanese yen to 3.3233/3290 from 3.3122/3161.
It was higher vis-a-vis the British pound at 5.6082/6169 versus 5.6161/6224 previously.
At the same time, the local note traded mixed against Asean currencies.
It improved vis-a-vis the Thai baht to 13.1658/1922 from 13.2283/2482 at Thursday’s close and rose to 3.3552/3609 against the Singapore dollar from 3.3588/3628 previously.
The local note declined versus the Indonesian rupiah to 303.4/304.1 from 302.9/303.5 yesterday and depreciated against the Philippine peso to 8.02/8.04 from 8.00/8.01. - Bernama
