Kuala Lumpur: The ringgit marginally depreciated against the US dollar on Wednesday, weighed down by a firmer greenback following an improvement in United States consumer confidence and persistent concerns over global tariff developments. At 8.05 am, the ringgit slid to 4.2350/2500 against the US dollar compared with Tuesday’s close of 4.2345/2430.
According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid reported that the US Dollar Index (DXY) rose by 0.59 per cent to 99.521 points last night, reflecting a modest recovery despite remaining below the 100-point level. The uptick was linked to the latest US Conference Board Consumer Confidence Index, which climbed to 98 points, driven by stronger stock market performance since early April and easing gasoline prices. Despite this rebound in consumer confidence, analysts remain cautious about the US economy’s prospects.
At yesterday’s close, the local note slipped 0.47 per cent to RM4.2388 versus the US dollar from RM4.2190 previously, as some traders opted to lock in profits. Dr Mohd Afzanizam noted that despite the recovery in confidence, the US economy still faces downside risks, particularly from inflationary pressures linked to tariff policies. Given the firmer dollar and lingering external uncertainties, the ringgit is expected to remain under pressure, trading within a narrower band of RM4.22 to RM4.23 today.
The ringgit showed positive performance against a basket of major currencies. It rose against the Japanese yen to 2.9391/9500 from 2.9425/9486, improved against the euro to 4.8012/8182 from 4.8053/8150, and appreciated against the British pound to 5.7228/7430 from 5.7352/7467 previously.
In contrast, the local note traded mixed against its ASEAN peers. It rose against the Singapore dollar to 3.2870/2989 from 3.2894/2963, but fell against the Thai baht to 12.9471/13.0025 from 12.9365/9676 at yesterday’s close. The ringgit was flat against the Philippine peso at 7.62/7.65 from 7.62/7.64 previously and also remained unchanged against the Indonesian rupiah at 259.9/261.0 from 259.9/260.6.