Ringgit closes lower against US dollar amid AI stock concerns
Investors remain cautious ahead of next week’s Federal Open Market Committee statement, despite widespread expectations that interest rates will hold steady, says an analyst.
KUALA LUMPUR: The Malaysian ringgit closed slightly lower against the US dollar on Friday, as cautious investors remained wary of AI-related stocks and falling bond yields. By 6pm on Friday, the ringgit had weakened to 4.0835/4.0875 against the greenback, down from its Thursday close of 4.0815/4.0850. According to Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid, the US dollar-ringgit pair fluctuated between 4.0813 and 4.0865 throughout the trading day.
Investors are currently cautious, anticipating the Federal Open Market Committee's statement and press conference next week, with markets expecting interest rates to remain steady between 3.75% and 4.00%. Despite these concerns, the ringgit performed relatively well against other major currencies, with a slight gain against the British pound, an upward trend vis-a-vis the euro, and only a minor decline against the Japanese yen.
Additionally, the ringgit showed strength against several ASEAN currencies, with gains against the Singapore dollar and Indonesian rupiah. However, it experienced a slight decrease against the Thai baht and remained relatively stable against the Philippine peso.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
