Ringgit ends higher against Asean currencies, eases against US dollar

KUALA LUMPUR: The Malaysian ringgit ended the trading day higher against many Asean currencies, but weakened against the US dollar on Monday. This shift came amidst growing worries about France's fiscal health following a significant drop in its bond market last week. As of 6pm, the ringgit slipped to 4.0845/4.0890 against the US dollar, down from its Friday close of 4.0820/4.0870.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid attributed the US Dollar Index's continued rise to the prevailing risk-averse sentiment and concerns over public finances and political turmoil in European countries. "The euro dropped to a 17-month low on Monday following news of a snap election in Spain," Rashid noted.

Consequently, the ringgit remained confined to a narrow range against the US dollar. Throughout the day, the ringgit exhibited mixed performances against other major currencies. It appreciated against the euro, reaching 4.5775/4.5825 from 4.5927/4.5983. The ringgit also saw gains against the Japanese yen, moving from 2.5906/2.5941 to 2.5858/2.5886.

However, it weakened against the British pound, falling from 5.3927/5.3993 to 5.4022/5.4081. Furthermore, the ringgit traded mostly higher against Asean currencies. It rose slightly against the Singapore dollar, trading at 3.1905/3.1943 compared to 3.1908/3.1952 on Friday. The local currency also strengthened against the Thai baht, reaching 12.1234/12.1411 versus 12.1579/12.1778.

Although the ringgit marginally increased against the Indonesian rupiah, trading at 227.9/228.3 compared to 228.2/228.6, it remained unchanged against the Philippine peso, staying at 6.52/6.53.