Ringgit Sinks Against Major Currencies Amid Rising US Yields
The Malaysian ringgit ended lower against several major currencies on August 3, including the US dollar, due to rising United States Treasury yields and renewed uncertainty over US monetary policy. At 6 pm, the local currency had weakened to 4.0935/0975 versus the greenback from last Friday's close of 4.0835/0875.
Investors are now focusing on upcoming US economic data, including the Job Openings and Labour Turnover Survey (JOLTS), ADP employment data, and nonfarm payrolls report on August 7. According to SPI Asset Management managing partner Stephen Innes, 'The upcoming US labour market data will be critical in determining whether the US dollar has further room to weaken.'
Meanwhile, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the Japanese yen is showing significant improvement. He attributed this to intervention by Japanese government authorities and a statement from US Treasury Secretary Scott Bessent, who said 'We will not hesitate to participate in further joint intervention.'