Ringgit closes lower against US dollar

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KUALA LUMPUR: The ringgit reversed final Friday’s features to shut lower against the US dollar on Monday amid cautious sentiment forward of Bank Negara Malaysia’s (BNM) rate of interest choice later this week.

At 6 pm, the native forex depreciated against the buck to 4.4120/4145 from Friday’s shut of 4.4060/4085.

An analyst mentioned regardless of S&P Global Ratings’ revision of Malaysia’s credit score scores outlook to secure from unfavorable, the ringgit weakened marginally against the US dollar as Federal Reserve chairman Jerome Powell’s hawkish reaffirmation pushed the US dollar index (DXY) again above the 105.0 degree.

“Nevertheless, S&P’s confidence in Malaysia, coupled with the advance within the nation’s manufacturing exercise has helped the native word to restrict its losses,” he mentioned.

On June 27, S&P Global Ratings revised upward its ranking outlook on Malaysia’s long-term sovereign credit score scores to secure from unfavorable, reflecting its expectation that the nation’s regular development momentum and robust exterior place will stay in place for the subsequent two years.

However, the analyst mentioned the ringgit could strengthen to under the 4.40 degree against the buck

as BNM is predicted to impose its first-ever back-to-back 25 foundation factors in a single day coverage price hike.

Add to that, the native word may profit from a possible enchancment in Malaysia’s macroeconomic indicators.

Meanwhile, the ringgit settled lower against a basket of main currencies.

The native forex fell against the British pound to five.3496/3526 from final Friday’s shut of 5.3163/3193 and slipped versus the euro to 4.6070/6096 from 4.5060/6086.

It additionally depreciated against the Japanese yen to three.2578/2599 from 3.2483/2504 final Friday and was flat vis-a-vis the Singapore dollar at 3.1596/1618. – Bernama



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