The ringgit closed lower against the US dollar on Nov 6, slipping to 4.0565/0610 at 6pm from Thursday’s 4.0445/0490. Renewed selling in the semiconductor sector pushed global markets into risk-off mode.
Against the RM4.0557 level seen after the US midterm elections, the ringgit was 0.22% weaker, according to Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid.
Why Did the Ringgit Fall Against the US Dollar on Nov 6?
SPI Asset Management managing partner Stephen Innes said investors turned cautious amid heightened uncertainty in global markets. He pointed to safe-haven demand for the US dollar against the euro and Australian dollar, which spilled over into Asian currencies.
Dr Mohd Afzanizam said concerns over artificial intelligence investment dominated financial markets. Both economists tied the ringgit’s weakness to global nerves rather than a local catalyst.
How Did the Ringgit Perform Against Major Currencies?
The ringgit traded mostly higher against a basket of major currencies, although it fell against the yen.
- Japanese yen: weakened to 2.5616/5646 from 2.5548/5578
- Euro: edged up to 4.5315/5365 from 4.5428/5478
- British pound: strengthened to 5.4304/4365 from 5.4455/4516
How Did the Ringgit Fare Against ASEAN Peers?
The ringgit’s performance against its ASEAN peers was mixed. It moved in both directions across four currencies.
- Singapore dollar: appreciated to 3.1657/1694 from 3.1679/1717
- Thai baht: gained to 12.0898/1105 from 12.1013/1199
- Indonesian rupiah: eased to 224.2/224.6 from 223.6/224.0
- Philippine peso: slipped to 6.43/6.44 from 6.42/6.43
Why Are Traders Watching US Nonfarm Payrolls Data?
Traders are awaiting US nonfarm payrolls data tonight. Consensus estimates put total job creation at 65,000 in October.
That compares with 29,000 jobs recorded in September, more than double the prior month. Bernama noted the data may further affect financial markets.
What Does the Weaker Ringgit Mean for Bursa Malaysia Shareholders?
The report does not name a Bursa-listed company, so no counter-level figures are available. Shareholders can instead track three reference points: the 4.0565/0610 close, the RM4.0557 post-midterm level, and the 65,000 payrolls consensus.
For stock-level research, AI Stock Analysis for Malaysians covers how to screen Bursa counters against these market moves.
Key Takeaways
- The ringgit closed at 4.0565/0610 per US dollar on Nov 6, from 4.0445/0490 on Thursday.
- The ringgit was 0.22% weaker than RM4.0557 after the US midterm elections.
- Risk-off sentiment and semiconductor selling drove the move, with safe-haven demand for the US dollar.
- The ringgit traded mostly higher against major currencies, fell against the yen, and was mixed against ASEAN peers.
- Traders are awaiting US nonfarm payrolls, with consensus at 65,000 jobs for October versus 29,000 in September.
Disclaimer: This article is for information only and does not constitute investment advice. Figures are taken from the Bernama report published by MalayMail. Do your own research before making any investment decision.
Frequently Asked Questions
What was the ringgit’s closing rate against the US dollar on Nov 6?
The ringgit closed at 4.0565/0610 against the US dollar on Nov 6, down from 4.0445/0490 at Thursday’s close. The figures were recorded at 6pm, according to Bernama.
Why did the ringgit weaken against the US dollar?
Selling pressure in the semiconductor sector and broad risk-off sentiment weighed on the ringgit. SPI Asset Management’s Stephen Innes also cited safe-haven demand for the US dollar against the euro and Australian dollar.
Did the ringgit weaken against all major currencies?
No. The ringgit traded mostly higher against a basket of major currencies, strengthening against the euro and British pound, but it fell against the Japanese yen to 2.5616/5646.
Why are traders watching US nonfarm payrolls data?
Consensus estimates put US job creation at 65,000 in October, compared with 29,000 in September. Bernama reported the data may further affect financial markets.
Source: View Original Article — The content is based on the original publisher. Refer to the original content for accurate info. Contact us for any changes.
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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.
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