Ringgit weakens against US dollar, mixed against other major currencies
KUALA LUMPUR: The ringgit continued to trade lower against the US dollar on Wednesday but strengthened against the British pound and the euro amid rising global bond yields and concerns over elevated government debt levels.
The ringgit weakened against the US dollar on Wednesday, but strengthened compared to other major currencies amidst rising global bond yields and concerns over excessive government debt. The ringgit closed at 4.0435/0475 against the US dollar, up from Tuesday's close of 4.0370/0410. Analysts were focused on rising bond yields, particularly the risk of higher inflation due to increased crude oil prices.
Central banks appeared to be lagging in tightening monetary conditions. The main concern was the lack of fiscal discipline to control fiscal deficits and rising government debt levels. IMF data predicts that the gross government debt-to-GDP ratio for the US, UK, and Japan will reach 125.8%, 103.6%, and 204.4%, respectively, in 2026.
The market was directionless, with traders and investors unsure about the best asset class. The ringgit fluctuated within a narrow range, between RM4.0405 and RM4.0448 against the US dollar. However, it appreciated against the euro, British pound, and Thai baht, while weakening against the Japanese yen, Philippine peso, and Indonesian rupiah.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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