In today’s trading session, the Malaysian ringgit experienced a slight dip against the US dollar, aligning with similar trends seen in other emerging market currencies. Investors are adopting a wait-and-see approach, contributing to this cautious market sentiment. They are eagerly anticipating the release of US private employment data later today.
At 6 pm, the local currency slipped to 4.7285/7320 against the greenback. This marked a marginal decline compared to the previous day’s closing rate of 4.7215/7255.
Meanwhile, Bank Negara Malaysia’s Governor, Abdul Rasheed Ghaffour, has dismissed the possibility of an interest rate cut at this juncture. He expressed confidence in the resilience of the domestic economy. He also cited strong employment figures and rising wages that continue to bolster household spending.
In a news report today, Governor Abdul Rasheed, who has overseen the central bank’s decision to maintain the overnight policy rate (OPR) at 3.0 percent in his first two meetings as governor, highlighted Malaysia’s growth prospects. He emphasized that the nation’s expansion would be supported by multi-year infrastructure projects and an anticipated resurgence in global demand in 2024.
Malaysia ringgit exchange rate down against other major currencies
The Malaysian ringgit also faced downward pressure when measured against a basket of major currencies. It recorded a decrease against the Japanese yen, with the exchange rate moving from 3.1504/1533 to 3.1703/1729 since Tuesday’s close. Similarly, it declined against the euro, sliding to 4.9645/9681 from 4.9500/9542 on Tuesday. Against the British pound, the ringgit depreciated to 5.7343/7385 from 5.7031/7079.
Among other ASEAN currencies, the local note predominantly displayed weaker performance. It decreased in value against the Thai baht, with the exchange rate shifting from 12.7381/7540 to 12.7549/7685 since Tuesday. However, it managed to gain ground against the Indonesian rupiah, moving from 303.0/303.4 to 302.4/302.8. Furthermore, the Malaysian ringgit weakened against the Philippine peso, recording rates of 8.34/8.35, compared to the previous day’s closing rate of 8.31/8.32. It also faced depreciation against the Singapore dollar, with rates shifting from 3.4366/4400 to 3.4462/4492 previously.
Amidst the ongoing economic challenges triggered by the pandemic, the Malaysian ringgit’s performance has been less than stellar. In the digital realm, netizens have taken to social media to express their sentiments, with many poking fun at Malaysia’s current Economic Minister, Rafizi Ramli. The posts circulating on various platforms primarily serve as reminders of the campaign promises he made during his time in the opposition.