The Malaysian Ringgit opened to a weaker start against the US dollar today, continuing its downward trajectory fueled by a weakening sentiment in the local currency market, according to industry experts.
At market open, the Ringgit dipped to 4.6325/6385 against the greenback, a decline from the previous day’s closing of 4.6265/6350. This slump in the Malaysian currency is not an isolated event against the US dollar, but a trend observed against several other global currencies.
Dr. Mohd Afzanizam Abdul Rashid, chief economist and head of social finance at Bank Muamalat Malaysia Bhd, attributed this weakening trend to the increasingly challenging external environment. Major central banks worldwide, including the Bank of England and the European Central Bank, are taking a hawkish stance, intent on curbing inflation. This global financial climate is causing the Ringgit to falter against not just the dollar, but the British pound and euro as well.
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“In the face of weakening market sentiments, the USD/MYR is expected to remain around 4.62,” Dr. Mohd Afzanizam predicted.
However, the local currency’s struggles extend beyond these currencies. The Ringgit has taken a hit against a range of major global currencies. It depreciated to 5.9296/9373 against the British pound from 5.9242/9351 on Monday, fell against the Japanese yen to 3.2598/2643 from 3.2588/2650, and saw a decline vis-a-vis the euro to 5.0582/0648 from 5.0470/0563.
This downward trend wasn’t confined to global currencies but extended to other Southeast Asian currencies as well. The Ringgit experienced declines against the Thai baht, sliding to 13.3152/3378 from the previous day’s 13.2926/3236, and weakened against the Singapore dollar to 3.4540/4590, a downturn from 3.4490/4556.
The local note didn’t fare any better against the Indonesian rupiah, slipping to 308.9/309.4 from 308.5/309.2, and experienced a drop against the Philippine peso, moving to 8.31/8.33 from 8.30/8.32.
The weakening market sentiment and external financial pressures are posing significant challenges to the Malaysian Ringgit. How the currency responds to these adversities in the coming days will be closely watched by economists and investors alike.
This news is based on Malay News
