THE RINGGIT was quoted at 4.4500/4730, a decline from Friday’s closing rate of 4.4375/4420.
The Malaysian ringgit opened lower against the US dollar on Monday morning, driven by cautious market sentiment following the latest US inflation data and ongoing policy uncertainties.
At 8 am, the ringgit was quoted at 4.4500/4730, a decline from Friday’s closing rate of 4.4375/4420.
Bank Muamalat Malaysia Bhd’s chief economist, Dr. Mohd Afzanizam Abdul Rashid, told Bernama that the US administration’s decision to impose a 25% tariff on steel and aluminium imports from all countries could further fuel uncertainties in the market.
"This tariff move could lead to increased demand for the US dollar, placing additional pressure on other currencies, including the ringgit," he said.
In addition to the tariff news, January’s Nonfarm Payrolls (NFP) data from the US showed a smaller-than-expected increase of 143,000, falling short of the consensus estimate of 170,000.
However, December's NFP was revised upwards from 256,000 to 307,000, and the unemployment rate fell to 4.0% from 4.1%, suggesting a resilient US labour market.
Despite the decline against the US dollar, the ringgit showed strength against most other major currencies. It appreciated against the euro, rising to 4.5884/6121 from 4.6101/6148, and gained against the British pound, trading at 5.5140/5425, up from 5.5278/5334.
Conversely, the ringgit weakened against the Japanese yen, slipping to 2.9303/9457 from 2.9217/9249.
This mixed performance underscores the influence of both international developments, such as US trade policies, and domestic economic data on the Malaysian currency.
Market participants will continue to closely monitor global events and data releases for further direction.
The local note was mixed against ASEAN currencies, strengthening against the Singapore dollar at 3.2791/2965 from 3.2866/2901 and rising against the Thai baht to 13.1214/2009 from 13.1853/2041.
However, it weakened against the Indonesian rupiah at 273.2/274.8 from 272.4/272.9 and the Philippine peso at 7.67/7.71 from 7.65/7.66 previously. – February 10, 2025
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