Kuala lumpur: The ringgit concluded Tuesday’s trading session on a lower note against the US dollar due to profit-taking activities ahead of imminent US economic data releases. At the end of the trading day, the ringgit depreciated to 4.2160/2210 against the US dollar, compared to the previous day’s close of 4.2045/2105.
According to BERNAMA News Agency, UOB Kay Hian Wealth Advisors Sdn Bhd’s head of investment research, Mohd Sedek Jantan, noted that the market is bracing for the US Conference Board consumer confidence report, a revised US second-quarter GDP on Thursday, and the core Personal Consumption Expenditures (PCE) inflation figures on Friday. Additionally, US Federal Reserve Governor Christopher Waller’s upcoming speech on Thursday is highly anticipated, especially since he advocated for a rate cut in July and is a potential successor to Jerome Powell as Fed Chair in May next year.
The US Conference Board consumer confidence index is a key indicator of consumer confidence in economic activity. In the meantime, Bank Muamalat Malaysia Bhd’s chief economist, Dr. Mohd Afzanizam Abdul Rashid, highlighted the potential termination of Fed Governor Lisa Cook as a prominent issue. The situation could lead to increased attention on the dynamics between the White House and the Federal Reserve, possibly affecting the dollar’s value.
Dr. Mohd Afzanizam also suggested that the probability of a weakening US dollar is rising, which might, in the mid to long term, result in the appreciation of the ringgit against the US dollar. He attributed this to US President Trump’s economic policies, including tariffs, the One Big Beautiful Bill Act (OBBBA), and other measures potentially detrimental to the US economy and the dollar.
Despite these prospects, the ringgit weakened against the US dollar today as traders likely secured profits ahead of the upcoming US inflation report on Friday. By the close of the trading session, the ringgit had mostly fallen against a range of major currencies.
It appreciated against the euro, reaching 4.9087/9145 from Monday’s 4.9163/9233, but lost ground against the Japanese yen, moving to 2.8571/8607 from 2.8534/8577, and weakened against the British pound, settling at 5.6827/6895 from 5.6740/6821.
The ringgit’s performance was mixed against other ASEAN currencies. It marginally declined against the Singapore dollar to 3.2786/2828 from 3.2761/2810, decreased against the Thai baht to 12.9707/9917 from 12.9561/9801, and also fell against the Indonesian rupiah to 258.6/259.0 from 258.5/259.1. Conversely, it strengthened against the Philippine peso, rising to 7.38/7.40 from 7.41/7.43.