KUALA LUMPUR: The ringgit edged higher at the close against the US dollar on Wednesday as traders and investors remain guarded ahead of a crucial week, said an analyst.
At 6 pm, the local note appreciated slightly to 4.3755/3805 against the greenback from Tuesday’s close of 4.3760/3810.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit maintained its depreciating bias against the greenback as the United States presidential election between Kamala Harris and Donald Trump on November 5 remains extremely close.
"One cannot help but think Trump might prevail in the election and punitive policies towards China, such as tariffs, will be high on the agenda. So, the concern is about the rising cost of doing business, possible retaliation from China and the impact it might have on inflation.
"All this will leave a big question mark on the prospect of rate cut decision by the US Federal Reserve. Under such conditions, it appears that traders are taking on the safe side by upping their holding in the US dollar. On that note, the ringgit will continue to remain weak in the near term,” he told Bernama.
At the close, the ringgit was lower against a basket of major currencies.
It eased slightly versus the Japanese yen to 2.8591/8625 versus Tuesday’s close of 2.8516/8550, it decreased vis-a-vis the British pound to 5.6877/6942 from 5.6805/6870 yesterday and slipped against the euro to 4.7430/7485 from 4.7344/7398 previously.
Meanwhile, the ringgit was traded mostly lower versus ASEAN currencies.
The local currency depreciated against the Indonesian rupiah at 278.5/279.0 compared with yesterday’s close of 277.4/277.9 and fell vis-a-vis the Singapore dollar to 3.3080/3120 from 3.3044/3084 from 3.2979/3008.
The ringgit was unchanged against the Philippine peso at yesterday’s close of 7.51/7.52 and slid against the Thai baht to 12.9837/13.0047 from 12.9544/9746. - Bernama
