Ringgit ends higher against Asean currencies, eases against US dollar

KUALA LUMPUR - The Malaysian ringgit ended the trading day higher against most Association of Southeast Asian Nations (Asean) currencies on Monday, but weakened against the US dollar amid renewed worries over France's fiscal health following a notable decline in its bond market the previous week. At 6 PM, the ringgit slipped to 4.0845/4.0890 against the US dollar from its previous close of 4.0820/4.0870.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid attributed the US Dollar Index's ongoing rise to the prevailing risk-off sentiment driven by concerns over public finances and political unrest in European countries. He noted that the euro had plummeted to a 17-month low on Monday following the announcement of a snap election in Spain.

As a result, the ringgit remained within a narrow range in comparison to the US dollar throughout the day. The local currency displayed mixed performance against a selection of key currencies, rising against the euro, Japanese yen, and Singapore dollar, while weakening against the British pound. Additionally, the ringgit showed mixed performance against other Asean currencies, strengthening against the Thai baht and Indonesian rupiah, but staying flat against the Philippine peso.