Ringgit lower against US dollar in early trade

The Malaysian ringgit began the day with a decrease against the US dollar, influenced by the ongoing appreciation of the US Dollar Index (DXY). Investor caution regarding the global growth outlook, particularly in China, contributed to this trend.

At 9:01 AM, the local currency weakened to 4.6275/6295 against the US dollar, marking a decline from the previous day's closing rate of 4.6140/6175.

Mohd Afzanizam Abdul Rashid, Chief Economist and Head of Social Finance at Bank Muamalat Malaysia Bhd, highlighted that key data from China for the day includes Fixed Asset Investment, with consensus estimates projecting it to remain at 3.8 percent for July.

Additionally, he pointed out that the Retail Sales figures in the United States (US) are anticipated to show a month-on-month growth of 0.4 percent in July, an increase from the previous 0.2 percent. This suggests that the US Federal Reserve's (Fed) anticipated shift in policy is not likely to materialize in the immediate future.

Consequently, Mohd Afzanizam asserted that the exchange rate between the ringgit and the US dollar is expected to hover around its near-term resistance level of 4.6257 throughout the day.

Meanwhile, the ringgit displayed predominantly upward movement against a range of major currencies.

It experienced a slight uptick against the Japanese yen, moving to 3.1822/1838 from yesterday's 3.1832/1858. It showed improvement against the euro, reaching 5.0468/0489 compared to the previous 5.0519/0557, while witnessing a decrease against the British pound, sliding to 5.8691/8716 from the earlier 5.8575/8619.

Concurrently, the domestic currency registered declines against various ASEAN currencies. It softened against the Indonesian rupiah, settling at 302.1/302.4, compared to Monday's 301.2/301.6. Similarly, it weakened against the Philippine peso, reaching 8.15/8.18 from the previous 8.11/8.13.

The ringgit also displayed a decrease against the Singapore dollar, with a rate of 3.4124/4143, contrasting Monday's closure at 3.4064/4095. Furthermore, it experienced a decline against the Thai baht, slipping to 13.1232/1337 from yesterday's 13.1173/1332.