KUALA LUMPUR, Jan 3 — The ringgit closed lower against the US dollar today as markets enter 2023 with lots of trepidation around the Federal Reserve’s (Fed) policy and China’s recovery from Covid-19 woes.
At 6pm, the local note dipped to 4.4050/4084 against the US dollar from last Friday’s close of 4.3995/4095.
The market was closed on January 2 for the New Year replacement holiday.
SPI Asset Management managing partner Stephen Innes told Bernama the weaker-than-expected manufacturing purchasing managers’ index (PMI) suggests it’s going to be a bumper ride to recovery.
“Hence, the ringgit shed early morning gains as the greenback turned a bit stronger likely due to uncertainty over the Fed policy where some think rate cuts are unlikely in 2023,” he said.
According to S&P Global, Malaysia’s manufacturing PMI slipped to 47.9 in November 2022 from 48.7 in October, showing a more marked slowdown in business conditions.
However, the ringgit traded mostly higher against a basket of major currencies.
It gained against the British pound to 5.2538/2579 from 5.2930/3051 at last Friday’s close, appreciated against the euro to 4.6460/6495 from 4.6881/6988 previously and was marginally higher versus the Singapore dollar to 3.2768/2798 from 3.2786/2865.
However, the ringgit fell vis-a-vis the Japanese yen to 3.3755/3786 from 3.3307/3385 on Friday. — Bernama