Ringgit ends lower against greenback amid "Economic D-Day" uncertainty

KUALA LUMPUR: The Malaysian ringgit closed weaker against the US dollar on Monday due to concerns over an impending "economic D-Day" against Iran, policy risks ahead of the Jackson Hole symposium, and ongoing instability in the US Treasury market. By 6pm, the ringgit slipped to 4.0405/0440 per US dollar from last Friday's close of 4.0365/0405.

Stephen Innes, a Quintex Intel global strategist, said the ringgit traded slightly weaker today but described the movement as cautious consolidation rather than the start of a significant decline. The uncertainty surrounding US Treasury Secretary Scott Bessent's promised economic D-Day against Iran, policy risks heading into the Jackson Hole symposium, and continued instability at the long end of the US Treasury curve have left the foreign exchange market with much to consider, Innes told Bernama.

The market is closely watching the US's planned economic D-Day sanctions, which are expected to include secondary sanctions against buyers, banks, refiners, vessels, and intermediaries handling Iranian oil, especially China's independent refiners and payment networks. Innes noted that the US dollar has strengthened modestly as traders seek protection against geopolitical and policy uncertainty, but this has not turned into a decisive risk-off move.

For now, the ringgit is taking a small step back while investors wait for more clarity from Washington and the US bond market.