KUALA LUMPUR – The ringgit continued its decline against the US dollar on Monday, closing at 4.4260/4.4305 compared to 4.4210/4.4255 the previous day. The depreciation followed a weaker-than-expected US consumer confidence report and growing investor caution over US-China trade tensions.
Bank Muamalat Malaysia Bhd’s chief economist, Afzanizam Rashid, noted that the ringgit traded within a narrow range against the dollar as market participants remained cautious about the US government’s latest restrictions on China’s access to American technology. In addition, the US has been urging its allies to impose tariffs on China, which could further weaken China’s economic outlook and shift market sentiment towards safer assets, benefiting the US dollar.
The ringgit also fell against other major currencies. It weakened against the Japanese yen to 2.9631/2.9663 from 2.9552/2.9584, declined against the British pound to 5.5993/5.6050 from 5.5806/5.5863, and dropped against the euro to 4.6455/4.6503 from 4.6301/4.6348.
Against regional currencies, the ringgit traded lower across the board. It depreciated against the Singapore dollar to 3.3079/3.3115 from 3.2997/3.3034 and fell against the Philippine peso to 7.64/7.66 from 7.63/7.64. The local currency also slipped against the Thai baht to 13.1281/13.1469 from 13.1132/13.1324 and declined against the Indonesian rupiah to 270.2/270.5 from 270.0/270.4.
Market analysts expect the ringgit to remain under pressure due to global economic uncertainties and ongoing trade tensions between the US and China.