ActivTrades trader Dyogenes Rodrigues Diniz said the US dollar’s appreciation against the ringgit is considered a natural response as the market had previously declined by 4.06% between June 26 and July 31.
“The present level of 4.5800 holds significance within the context of the daily chart as it marks a crucial resistance point. This level coincides with the breakout point of the bullish trend line on the same chart.
“From a technical perspective, if the USD/MYR currency pair manages to breach the lowest value recorded in yesterday’s candlestick, which was at 4.5550, there is potential for it to decrease further, possibly reaching as low as 4.5050,” he said.
Meanwhile, Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said Malaysia’s industrial production index (IPI) saw a more substantial decline than anticipated, contracting by 2.2% in June.
“This decline underscores the weakening external demand for the country, impacting industries oriented towards exports.
“Consequently, it’s expected that the ringgit will continue to show weakness against the US dollar, as a risk-averse sentiment could dominate the market, leading to an increased demand for the dollar,” he told Bernama.
At 9.05am, the local note eased to 4.5860/4.5905 against the greenback compared with 4.5815/4.5845 at yesterday’s close.
The ringgit was also traded mostly higher against a basket of major currencies.
It appreciated against the Japanese yen to 3.1998/3.2032 from 3.2027/3.2050 at Tuesday’s close, rose against the euro to 5.0263/5.0312 from 5.0264/5.0297, and fell vis-a-vis the British pound to 5.8458/5.8515 from 5.8332/5.8370 yesterday.
Meanwhile, the local unit traded mostly higher against other Asean currencies.
It rose versus the Singapore dollar to 3.4016/3.4054 from 3.4030/3.4055 from Tuesday’s close, appreciated against the Philippine peso to 8.12/8.14 from 8.14/8.15, and went up against the Thai baht to 13.0808/13.0992 from 13.1050/13.1184 previously.
The ringgit depreciated against the Indonesian rupiah to 301.3/301.7 from 301.0/301.3 at yesterday’s close.