RINGGIT WEAKENS AGAINST GREENBACK AMID ESCALATING GEOPOLITICAL RISKS

By Nurunnasihah Ahmad Rashid

KUALA LUMPUR, Oct 3 (Bernama) -- The ringgit ended lower on Thursday against the US dollar as the greenback strengthened on the back of heightened uncertainties on the geopolitical front.

At 6 pm, the local note depreciated to 4.2185/2250 versus the US dollar compared with yesterday’s close of 4.1730/1790.  

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit was generally weaker against the greenback throughout the day. 

Similarly, he said that the Japanese yen was also weaker against the US dollar as the prospect of an interest rate hike by the Bank of Japan looks dim following comments from the new Japanese prime minister that the country is not ready for another rate hike.

“Hence, in the near term, the technical correction has occurred with the prevailing USDMYR flirting near its immediate resistant level of RM4.2128,” Mohd Afzanizam told Bernama.

Another analyst said the ringgit slipped for the third straight session, slipping as much as 1.085 per cent, to its lowest level since September 19 at 4.2025/2105.

The analyst said investors flocked to the safe-haven US dollar due to concerns about a potential escalation in regional conflict following Iran’s ballistic missile attack on Israel.

“At the same time, Wednesday’s stronger-than-anticipated United States private payrolls data bolstered expectations that the US Federal Reserve (Fed) will not hasten to lower interest rates, which further supported the greenback.

“Investor is now focus on the US nonfarm payrolls report set for Friday, as it may offer insights into the Fed’s future interest rate decisions,” said the analyst.

Back home, the ringgit strengthened versus the Japanese yen to 2.8711/8757 from 2.8931/8975 at Wednesday’s close and appreciated vis-a-vis the British pound to 5.5330/5415 from 5.5472/5551, but fell against the euro to 4.6555/6627 from 4.6208/6274 yesterday.

Meanwhile, the local currency performed mostly lower against ASEAN currencies.

It was lower vis-a-vis the Singapore dollar at 3.2523/2575 compared to 3.2386/2436 at yesterday’s close, declined against the Indonesian rupiah to 273.4/273.9 from 273.2/273.8 and eased against the Philippine peso at 7.48/7.50 compared to 7.43/7.44 previously.

However, the ringgit rose versus the Thai baht to 12.7270/7520 from 12.7350/7587 previously.

-- BERNAMA