Ringgit Ends Lower As Us Retail Data Beats Expectations

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KUALA LUMPUR: The ringgit closed easier against the US dollar today as the greenback rebounded from an over two-month low earlier this week on the back of a stronger-than-expected US retail sales data.Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the ringgit was weaker in the morning session at RM4.7175 to the US dollar but improved in the afternoon towards RM4.6890.
“Market sentiment is still centred on the Federal Reserve’s next move, which could see US rates nearing its peak.
“Tomorrow, markets will be focusing on the announcement of Malaysia’s third-quarter gross domestic product – whether the 3.3% growth can be maintained as indicated by advanced estimates,” he said.
SPI Asset Management managing director Stephen Innes said the local currency suffered a mild setback at the open as US yields rose overnight on more robust-than-expected US retail sales.
However, as the day wore on, the yields eased as the markets concluded that the retail sales were far less hawkish when taking the softer producer price index figures into context.
“Hence, the concern is that markets are now overestimating the chances of multiple Federal Reserve cuts next year, but those concerns are easing as the day wears on,” he shared.
In addition, he said, there were positive signs from the Asia-Pacific Economic Cooperation (Apec) meeting in San Francisco that the White House is now adopting a conciliatory approach to China, which has eased geopolitical risk and improved local sentiment.
At 6pm, the ringgit eased to 4.6850/4.6910 against the greenback from yesterday’s close of 4.6695/4.6755.
It was traded mostly higher versus a basket of major currencies.
The local currency advanced against the Japanese yen to 3.0963/3.1005 from 3.1049/3.1091 at Wednesday’s close and improved vis-a-vis the British pound to 5.8103/5.8178 from 5.8187/5.8261 yesterday, but slipped against the euro to 5.0832/5.0897 from 5.0669/5.0734 previously.
The local currency ended lower against other Asean currencies.
It depreciated against the Singapore dollar to 3.4737/3.4784 from 3.4615/3.4662 on Wednesday and was lower versus the Philippine peso at 8.40/8.41 compared with 8.36/8.38 previously.
The ringgit also weakened against the Thai baht to 13.2065/13.2286 from 13.1713/13.1935 yesterday and decreased vis-a-vis the Indonesian rupiah to 301.1/301.7 from 300.5/301.1. - FMT

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