Ringgit eases against US dollar amid mixed US market signals

KUALA LUMPUR, Nov 6 — On Friday morning, the Malaysian ringgit began trading weaker against the US dollar amid uncertainty surrounding the US economy and financial markets. By 8 am, the local currency had slipped to 4.0450/0520 per US dollar from yesterday's close of 4.0445/0490. Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid explained that the US Dollar Index (DXY) rose by 0.03 per cent to 101.60, bolstered by evidence of strength in the US labor market.

Notably, initial jobless claims fell to 189,000 last week, indicating a robust labor market. However, Afzanizam noted that the two- and 10-year US Treasury yields decreased by 12 and five basis points respectively, to 4.46 per cent and 4.83 per cent, suggesting that the market's expectations for rate hikes may be waning. Additionally, the planned expansion of artificial intelligence (AI) data centers may be scrutinized by the US Congress in 2027, which could impact investor confidence in the sector's valuation.

The ringgit also showed mixed performance against other major currencies, strengthening against the euro, British pound, and Singapore dollar, while weakening slightly against the Japanese yen, Thai baht, and Philippine peso.