Ringgit Falls Against Major Currencies Amid Rising US Yields
The ringgit ended lower against the US dollar and other major currencies on August 3, due to rising US Treasury yields and uncertainty over US monetary policy. At 6 pm, the local currency eased to 4.0935/0975 versus the greenback from last Friday's close of 4.0835/0875.
The upcoming US labour market data, including the Job Openings and Labour Turnover Survey (JOLTS), ADP employment data, and nonfarm payrolls report on August 7, will be critical in determining whether the US dollar has further room to weaken, according to Stephen Innes of SPI Asset Management.
The Japanese yen was showing significant improvement, with US dollar-yen at 156.91 yen after piercing the 160 yen mark in early June, likely due to intervention by Japanese government authorities, noted Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid.