Ringgit slips against US dollar amid global risk-off sentiment

KUALA LUMPUR: The Malaysian ringgit experienced a decline against the US dollar on Friday, influenced by a prevailing risk-off sentiment in global markets and increased selling pressure in the semiconductor sector. By 6pm, the local currency depreciated to 4.0565/4.0610 against the US dollar from the previous close of 4.0445/4.0490.

Stephen Innes, managing partner of SPI Asset Management, noted that the ringgit faced pressure as investors grew cautious due to heightened uncertainty in global markets. He explained that there was also some demand for the US dollar as a safe-haven currency against other major currencies like the euro and Australian dollar, which subsequently impacted Asian currencies.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid reported that the ringgit was weaker by 0.22% against the US dollar today, as opposed to RM4.0557 following the US midterm elections. Traders were also anticipating the release of US nonfarm payrolls data for October, with consensus estimates estimating total job creation at 65,000 compared to 29,000 in September.

Against a basket of major currencies, the ringgit generally traded higher. It fell against the Japanese yen to 2.5616/2.5646, increased against the euro to 4.5315/4.5365, and strengthened against the British pound to 5.4304/5.4365. However, it weakened against the Singapore dollar to 3.1657/3.1694 and the Thai baht to 12.0898/12.1105, while it slipped against the Philippine peso to 6.43/6.44.