KUALA LUMPUR: The ringgit depreciated against the US dollar at the close on Tuesday amid a sharp fall in the price of oil and on continued expectations of a smaller cut in US interest rates going forward.
At 6 pm, the local note dropped to 4.3080/3120 versus the greenback compared to yesterday’s close of 4.2945/2995.
US Federal Reserve (Fed) governor Christopher Waller has urged a more cautious approach to interest rate cuts, pointing to recent economic data that highlighted the strength of the US economy and labour market, according to the latest media reports.
SPI Asset Management managing director Stephen Innes said this has increased demand for the US dollar, putting downward pressure on the ringgit.
"Additionally, the weakening Chinese renminbi is contributing to the ringgit's decline. Disappointing fiscal policy updates from China over the weekend have left markets underwhelmed, affecting regional currencies.
"Moreover, sliding oil prices, influenced by an OPEC downgrade in demand outlook and likely tied to China's economic slowdown, are further compounding the bearish sentiment surrounding the ringgit,” he told Bernama.
At the close, the ringgit was lower against a basket of major currencies.
It fell versus the euro to 4.7013/7057 from 4.6935/6989, lost against the British pound to 5.6357/6410 from 5.6056/6121 and retreated vis-a-vis against the Japanese yen to 2.8928/8957 from 2.8743/8778 previously.
The local note was traded mixed versus ASEAN currencies.
It appreciated against the Thai baht to 12.9121/9303 from 12.9310/9538 and rose vis-a-vis against the Philippine peso to 7.44/7.46 from 7.47/7.49 at yesterday’s close. It was lower against the Singapore dollar at 3.2928/2961 from 3.2868/2909 and dropped against the Indonesian rupiah to 276.3/276.7 compared to 275.8/276.3 previously. - Bernama
