Ringgit weakens against US dollar at the close

THE ringgit closed lower against the US dollar today as markets enter 2023 with lots of trepidation around the US Federal Reserve’s (Fed) policy and China’s recovery from Covid-19 woes.

At 6pm, the local note dipped to 4.4050/4084 against the US dollar from last Friday’s close of 4.3995/4095.

The market was closed on Jan 2 for the New Year replacement holiday.

SPI Asset Management managing partner Stephen Innes told Bernama the weaker than expected Manufacturing Purchasing Managers’ Index (PMI) suggests it’s going to be a bumper ride to recovery.

“Hence, the ringgit shed early morning gains as the greenback turned a bit stronger likely due to uncertainty over the Fed policy where some think rate cuts are unlikely in 2023,” he said.

However, the ringgit traded mostly higher against a basket of major currencies.

It gained against the British pound to 5.2538/2579 from 5.2930/3051 at last Friday’s close, appreciated against the euro to 4.6460/6495 from 4.6881/6988 previously and was marginally higher versus the Singapore dollar to 3.2768/2798 from 3.2786/2865.

However, the ringgit fell vis-a-vis the Japanese yen to 3.3755/3786 from 3.3307/3385 last Friday. — Bernama/pic by Bloomberg