KUALA LUMPUR: The ringgit closed almost flat against the US dollar on Monday as markets remained cautious about the geopolitical developments engulfing the Middle East, while the US Dollar Index (DXY) stayed well supported.
At 6 pm, the local currency stood at 4.3045/3100 against the greenback compared to last Friday’s close of 4.3045/3075.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the local currency was in a tight range against the greenback during the day at around 4.2970 to 4.3070.
He noted that the People’s Bank of China has cut its policy rate today by 25 basis points, suggesting that the authority is committed to ensuring the economy is well supported after growth in the third quarter ended 2024 (3Q 2024) came in at 4.6 per cent from 4.7 per cent in the previous quarter.
Domestically, he said the Malaysian economy continued to show positive performance, with 3Q 2024 gross domestic product advance estimates indicating a 5.3 per cent growth.
The construction sector surged 19.5 per cent, up from 17.3 per cent previously, while the manufacturing sector expanded at 5.7 per cent, compared to 4.7 per cent in the preceding quarter.
"However, market sentiment remains cautious due to geopolitical risks in the Middle East, which has kept the DXY well supported,” he told Bernama.
At the close, the ringgit was mostly higher against a basket of major currencies.
It edged up against the Japanese yen to 2.8685/8724 from 2.8708/8730 last Friday and increased vis-a-vis the British pound to 5.6040/6112 from 5.6109/6148.
However, it slipped against the euro to 4.6687/6746 from 4.6674/6706 at Friday’s close.
Meanwhile, the ringgit traded mostly firmer versus ASEAN currencies.
The local note appreciated against the Thai baht to 12.8719/8945 from 12.9579/9916, strengthened against the Singapore dollar to 3.2776/2821 from 3.2791/2817 and rose against the Indonesian rupiah to 277.6/278.1 from 278.0/278.3 previously.
It was unchanged versus the Philippine peso at 7.48/7.49 versus Friday’s close. - Bernama
