Ringgit closes lower amid global market jitters and semiconductor sell-off

KUALA LUMPUR, Nov 6 — The Malaysian ringgit closed lower against the US dollar on Friday, grappling with a global market jitters and a semiconductor sell-off. At 6pm, the local currency fell to 4.0565/0610 against the greenback, down from Thursday's close of 4.0445/0490. Stephen Innes, Managing Partner at SPI Asset Management, stated that the ringgit faced pressure as investors grew cautious due to heightened uncertainty in global markets.

He noted that there was also a surge in safe-haven demand for the US dollar against other major currencies like the euro and the Australian dollar, which affected Asian currencies. Meanwhile, Dr Mohd Afzanizam Abdul Rashid, Chief Economist at Bank Muamalat Malaysia Bhd, said the ringgit weakened against the US dollar by 0.22 percent compared to RM4.0557 post US midterm elections.

Traders were also waiting for the US nonfarm payrolls data, with consensus estimates expecting a job creation of 65,000 in October, up from 29,000 in September. The ringgit showed mixed performance against other currencies. It weakened against the Japanese yen to 2.5616/5646 from 2.5548/5578 on Thursday, but rose against the euro to 4.5315/5365 from 4.5428/5478 the previous day.

It strengthened against the British pound to 5.4304/4365 from 5.4455/4516. However, the ringgit performed differently against other Asian currencies. It appreciated against the Singapore dollar to 3.1657/1694 from 3.1679/1717, but fell against the Thai baht to 12.0898/1105 from 12.1013/1199. It also weakened against the rupiah to 224.2/224.6, compared to 223.6/224.0 on Thursday, and declined against the Philippine peso to 6.43/6.44 from 6.42/6.43.