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MARKET • 31/12/2024 06:55 PM

Ringgit Closes Lower AS Greenback Demand Rises Amid Global Uncertainties

By Zufazlin Baharuddin

KUALA LUMPUR, Dec 31 (Bernama) -- The ringgit closed lower against the US dollar on the last trading day of 2024 on rising demand for the safe-haven currency amid ongoing global economic uncertainties.

At 6 pm, the ringgit slid to 4.4690/4745 against the greenback, compared with yesterday’s close of  4.4645/4700.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said conditions currently favour the greenback as the United States (US) Federal Reserve (Fed) is expected to ease its monetary policy in 2025 more gradually.

“The prospects for lower rate cuts in 2025 weighed heavily on various currencies including the ringgit as the US economy remains resilient and has fared well compared to other developed countries.

“Clearly, the US dollar has performed well despite the Fed's decision to cut interest rates since September 2024,” he told Bernama.

Mohd Afzanizam noted that the local note was on a firmer footing against the greenback during the early morning session, however, it gradually weakened while the US Dollar Index (DXY) stayed elevated throughout the day. 

Meanwhile, SPI Asset Management managing partner Stephen Innes said Asian foreign exchange markets are trading cautiously with only three weeks to go until the US presidential inauguration, as traders focus on the looming changes in Washington.

The ringgit closed mostly higher against other major currencies. 

It went down against the Japanese yen to 2.8529/8566 from Monday’s close of 2.8278/8314, but appreciated against the British pound to 5.6095/6164 from 5.6146/6215 yesterday and was higher vis-a-vis the euro at 4.6549/6606 from 4.6583/6640 previously.

At the same time, the local note traded mixed against ASEAN currencies, strengthening versus the Singapore dollar to 3.2824/2867 from 3.2890/2935 at the previous close and rose against the Thai baht to 13.0566/0830 from 13.0905/1139 yesterday.

However, it was lower against the Indonesian rupiah at 276.9/277.5 from 276.5/277.0 on Monday and remained unchanged versus the Philippines’ peso at 7.70/7.72.

-- BERNAMA

 

 

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