The ringgit opened lower against the US dollar and most major currencies on Wednesday as weaker US consumer data dampened investor sentiment.
At 8:02 am, the ringgit stood at 4.0795/0850 against the US dollar, compared to 4.0790/0850 at Tuesday's close.
Bank Muamalat Malaysia Bhd Chief Economist Dr. Mohd Afzanizam Abdul Rashid noted that the Conference Board Consumer Confidence Index fell by 8.19 points in September, marking its lowest level since April 2014.
He stated that concerns regarding the high cost of goods and services—particularly oil and gas prices—were among the factors influencing US consumer sentiment.
Labor market data also showed signs of weakness, with job openings—as measured by the Job Openings and Labour Turnover Survey (JOLTS)—dropping to 7.09 million in August, falling short of the expected 7.23 million.
Afzanizam noted that this trend has been declining since April. However, the US Dollar Index (DXY) rose 0.17% to 101.372 points as US Federal Reserve (Fed) officials maintained a stance favoring tighter monetary policy.
Ringgit Trades Lower
At the opening, the ringgit depreciated against the euro to 4.6257/4.6320 from 4.6235/4.6303 at Tuesday's close. The ringgit also weakened against the British pound to 5.3960/5.4032 from 5.3931/5.4016 and depreciated against the Japanese yen to 2.5921/2.5958 from 2.5863/2.5909.
Against ASEAN currencies, the ringgit fell versus the Singapore dollar to 3.1921/3.1969 from 3.1885/3.1934 and weakened against the Thai baht to 12.1540/12.1759 from 12.1402/12.1632.
However, the ringgit remained largely unchanged against the Indonesian rupiah at 226.9/227.2, while holding steady at 6.52/6.53 against the Philippine peso.
The ringgit's movement in early trading reflected cautious market sentiment following weaker US economic data, while the strength of the US dollar remained a key factor monitored by the market.
