Ringgit Gains on ASEAN Peers Despite Dollar Weakness
Malaysia's currency closed higher against regional peers on Monday, though it slipped slightly against the US dollar.
The ringgit traded 0.12% weaker against the US dollar at the close. The currency stood at 4.0735 per dollar. This marked a drop from Friday's close of 4.0685. The movement coincided with Brent crude hovering near 107 US dollars per barrel. Traders braced for upcoming central bank decisions.
Against regional peers, the Malaysian unit showed strength. The currency appreciated against the Singapore dollar. It also rose against the Thai baht and Indonesian rupiah. These gains reflect broader Asian market sentiment. Inflation risks from oil prices continue to weigh on the outlook.
Regional currency performance details
The ringgit strengthened against the euro to 4.7008. It improved against the Japanese yen to 2.6355. The British pound saw a slight gain for the local note. The exchange rate moved to 5.4931. These figures represent the closing values for Monday's session. The changes indicate relative stability within the major currency complex.
In Southeast Asia, the local currency outperformed several neighbors. It firmed against the Singapore dollar to 3.2055. The baht saw the ringgit advance to 12.2445. The rupiah traded higher against the ringgit at 230.5. The Philippine peso also recorded a slight gain for the Malaysian unit. These movements highlight the currency's relative resilience in the region.
Market drivers and analyst views
Dr. Mohd Afzanizam Abdul Rashid cited rising oil prices as a key factor. He noted that inflationary bias supports the rate hike thesis. Markets are awaiting the Federal Open Market Committee decision. The Bank of Japan meeting also draws attention. These events are expected to keep Asian currencies guarded in the near term.
According to GN markets/fx (en-US), the current volatility stems from macroeconomic uncertainties. The combination of high oil costs and potential interest rate hikes creates pressure. Traders are positioning for defensive strategies. The ringgit's performance remains tied to global risk sentiment. Local economic indicators will play a secondary role in the short term.
