Kuala lumpur: The ringgit closed lower against the US dollar on Monday, reflecting cautious sentiment in the foreign exchange market. This decline was influenced by weaker economic data from China and concerns surrounding the upcoming release of the Federal Open Market Committee (FOMC) minutes scheduled for Wednesday.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd's chief economist, Dr. Mohd Afzanizam Abdul Rashid, highlighted that China's economic indicators were the focal point. China's fixed-asset investment contracted by 1.6 percent during the first four months of 2026, contrary to the anticipated growth of 1.7 percent. Additionally, retail sales showed a marked slowdown, increasing by only 0.2 percent year-on-year in April compared to a 1.7 percent rise in the previous month. Industrial production growth also moderated to 4.1 percent from 5.7 percent. These figures indicate a deceleration in China's economy amid the supply shock in the oil and gas sector, following the outbreak of war in Iran on February 28 this year. Consequently, market sentiment remained cautious throughout the day.

At the conclusion of trading, the ringgit exhibited a generally weaker performance against a range of major currencies. While it strengthened against the British pound, rising to 5.3078/3145 from 5.3094/3135 at Friday's close, it weakened against the Japanese yen to 2.4991/5024 from 2.4886/4907, and depreciated against the euro, sliding to 4.6214/6272 from 4.6009/6044.

The local currency also demonstrated a softer trend against regional currencies. It eased against the Singapore dollar to 3.1036/1078 from 3.0867/0893 on Friday, fell against the Philippine peso to 6.43/6.45 from 6.37/6.38, weakened against the Thai baht to 12.1646/1848 from 12.1506/1652, and slipped against the Indonesian rupiah to 224.8/225.1 from 224.1/224.4.