Ringgit opens lower against major currencies, US dollar

KUALA LUMPUR: The ringgit commenced the trading day on Wednesday with a weaker stance against major currencies, notably the US dollar, as disappointing consumer data from the US cast a shadow over investor sentiment and dampened risk appetite in the foreign exchange market. By 8:02am, the ringgit slipped to 4.0795/4.0850 against the greenback, down from Tuesday's close of 4.0790/4.0850.

Afzanizam Rashid, the chief economist at Bank Muamalat Malaysia Bhd, pointed to the Conference Board's Confidence Index, which declined by 81.9 points in September to its lowest level since April 2014. He attributed the pessimism to high costs of goods and services, with oil and gas prices being a significant factor. Afzanizam added that both the Job Openings and Labour Turnover Survey (JOLTS) for August and consumer confidence had been declining since April.

Meanwhile, the US Dollar Index (DXY) rose by 0.17% to 101.372 points, as US Federal Reserve officials maintain a hawkish outlook on monetary policy. The ringgit opened weaker against a basket of major currencies, including the euro at 4.6257/4.6320, the British pound at 5.3960/5.4032, and the Japanese yen at 2.5921/2.5958. Against Asean currencies, the local note faced pressure against the Singapore dollar at 3.1921/3.1969, the Thai baht at 12.1540/12.1759, remained unchanged against the Indonesian rupiah at 226.9/227.2, and held steady against the Philippine peso at 6.52/6.53.