Ringgit Weakens Against US Dollar Amid Global Economic Concerns
Ringgit ends lower against the US$ as global uncertainties weigh on sentiment
The Star
Image: The Star
The Malaysian ringgit depreciated to 4.0095 against the US dollar due to rising fuel prices and ongoing geopolitical tensions. Analysts warn that elevated fuel costs could drive global inflation, impacting market sentiment and trade policies.
- 01The ringgit closed at 4.0095 against the US dollar, down from 3.9955 the previous day.
- 02Concerns over high fuel prices and unresolved geopolitical tensions are affecting market confidence.
- 03The US Trade Representative has proposed a 10% tariff on Malaysian goods, pending further investigation.
- 04The ringgit also weakened against other major currencies, including the British pound and euro.
- 05Despite the decline, the ringgit gained slightly against the Indonesian rupiah.
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On Thursday, the Malaysian ringgit fell to 4.0095 against the US dollar, a decline attributed to cautious market sentiment driven by rising fuel prices and ongoing geopolitical tensions. The depreciation from Wednesday's close of 3.9955 reflects concerns that elevated fuel costs could lead to increased global inflation. Dr. Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, noted that the lack of resolution in conflicts involving the United States and Israel, as well as Iran, has heightened trader anxiety. Additionally, the US Trade Representative's proposed 10% tariff on Malaysian goods, following an ongoing investigation into alleged forced labor, adds to market unease. The ringgit also weakened against several other major currencies, trading at 5.3872 against the British pound and 4.6610 against the euro. However, it showed slight strength against the Indonesian rupiah, trading at 222.1.
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The depreciation of the ringgit may lead to higher import costs for Malaysians, affecting prices of goods and services.
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