Kuala lumpur: The ringgit has retreated to close lower against the US dollar as well as major currencies on Thursday due to a lack of buying interest, said an analyst. At 6 pm, the local note eased to 4.2340/2385 against the greenback from Wednesday’s close of 4.2235/2305.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid noted that the market anticipates that the US tariff could impact the US economy, potentially leading the Federal Reserve (Fed) to consider reducing the Fed Fund Rate to support economic activity. Despite this, Dr. Mohd Afzanizam remarked that the US Dollar Index (DXY) is struggling to gain strength, as speculation regarding an interest rate cut by the Fed gains momentum. He highlighted that the US DXY fell by 0.1 percent to 98.074, with US tariffs remaining a prominent topic in news headlines.

Dr. Mohd Afzanizam observed that throughout the day, the ringgit versus the US dollar was generally confined within a tight range of RM4.22 to RM4.23. At the market close, the ringgit also ended lower against major currencies. It fell against the yen to 2.8732/8765 from 2.8570/8619 at the previous close on Wednesday, dropped versus the British pound to 5.6596/6656 from 5.6160/6253, and weakened against the euro to 4.9411/9463 from 4.8929/9010.

In addition, the ringgit experienced a downward trend against regional peers. It declined against the Singapore dollar to 3.2973/3013 from 3.2806/2863, fell against the Thai baht to 13.0954/1146 from 13.0291/0567, weakened against the Indonesian rupiah to 259.9/260.3 from 258.1/258.6, and slipped against the Philippine peso to 7.42/7.44 from 7.34/7.36.