KUALA LUMPUR, June 28 — The ringgit ended lower today due to strong US economic data overnight that saw the broader dollar clawing back some gains, said an analyst.
At 6pm, the local note ended at 4.6705/6740 against the greenback compared with 4.6640/6685 yesterday.
SPI Asset Management managing director Stephen Innes said the Chinese yuan was back to pre-intervention levels after the People's Bank of China (PBOC) held back from supporting its currency.
China’s economic recovery is not on track, underscored by the 18.8 per cent fall in its industrial profits in the first five months of 2023, he said.
Innes said Bank Negara Malaysia (BNM) alluded to an intervention early in the week. That seemed to have tempered the selling pace, however, unless exporters begin to sell their US dollar holdings from export proceeds, which have grown to around US$26.5 billion (RM124 billion), or 15.3 per cent of total banking deposits by businesses.
“Other than the Federal Reserve sounding more dovish, I am not sure what can stem the weaker tide, especially with the yuan expected to weaken further over the short term,” he told Bernama.
At the close, the currency was slightly lower against the Japanese yen at 3.2427/2454 from 3.2425/2458. It depreciated vis-a-vis the euro to 5.1128/1166 from 5.1043/1092.
However, the local note was firmer versus the British pound at 5.9292/9336 from yesterday’s close of 5.9326/9383.
The local note traded mixed against other Asean currencies.
The ringgit appreciated against the Singapore dollar at 3.4550/4581 from 3.4553/4592 yesterday and rose versus the Thai baht to 13.1054/1211 from 13.2155/2342.
It was marginally lower vis-a-vis the Indonesian rupiah at 311.4/311.9 from 311.0/311.5 and depreciated against the Philippine peso to 8.45/8.46 from 8.43/8.44. — Bernama
