Ringgit eases against US$, tracks major currencies
The Malaysian ringgit has weakened against the US dollar as global market tensions and expectations of a US interest rate hike persist. While the currency faces pressure, analysts note that Malaysia's status as an energy exporter and strong trade data provide some resilience.
Why it matters
Currency fluctuations impact national inflation, import costs, and the effectiveness of central bank monetary policies in emerging markets.
KUALA LUMPUR: The ringgit eased against the US dollar in the early session, tracking other major currencies, as the domestic unit is likely to stay cautious amid lingering West Asia tensions that further disrupt global oil and gas flows.
At 8 am, the local currency stood at 4.0855/0920 versus the greenback, compared with 4.0850/0890 at yesterday's close.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the implication is how the prevailing condition would translate into inflation and, more importantly, the US Federal Open Market Committee (FOMC) decision on interest rates.
"The odds for a September hike have risen to 64.8 per cent compared to 51.5 per cent in early July. Hence, it is going to be dollar-positive in the near term," he told Bernama.
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