Ringgit Depreciates Significantly Against USD, Market Sentiment Remains Cautious

thecekodok


The ringgit opened lower against the US dollar as market sentiment remained cautious ahead of US inflation data due this week and ongoing policy uncertainty.


At 10.15am, the ringgit was at 4.4670, down 0.68% against the US dollar from its close of 4.4375 on Friday.


Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the administration of US President Donald Trump would impose a 25% tariff on steel and aluminium imports from all countries.


The move could increase uncertainty in the currency market with the US dollar likely to remain in high demand.


Meanwhile, Non-farm Payrolls (NFP) rose lower than expected at 143,000 in January compared to the consensus estimate of 170,000.


Locally, the ringgit traded higher against other major currencies but fell against the Japanese yen to 2.9303/9457 from 2.9217/9249 on Friday.


It rose against the euro to 4.5884/6121 from 4.6101/6148 previously and rose against the British pound to 5.5140/5425 from 5.5278/5334.


The local note traded mixed against Asean currencies.


It was higher against the Singapore dollar at 3.2791/2965 from 3.2866/2901 at Friday's close and rose against the Thai baht to 13.1214/2009 from 13.1853/2041.


The ringgit, however, depreciated against the Indonesian rupiah to 273.2/274.8 from 272.4/272.9 and weakened against the Philippine peso to 7.67/7.71 from 7.65/7.66 at Friday's close.

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