Bank Negara Malaysia said today that it will intervene in the foreign exchange market to stem currency movements that are deemed excessive.

Assistant governor Adnan Zaylani said while the value of the ringgit will continue to remain market-determined, the central bank expects ongoing measures by the government to strengthen the economy would ensure the ringgit better reflects the country’s fundamentals.

SPI Asset Management managing director Stephen Innes said the ringgit traded stronger today as the US dollar was weaker against Asian foreign exchange (forex) currencies on reports that China’s major state-owned banks were seen selling dollars in the offshore spot forex market.

“Hence, the action has taken some heat off the Chinese yuan’s weakening trajectory. The stronger yuan helped the ringgit claw back some lost ground today,” he told Bernama.

Additionally, Innes said the forex focus should be on Friday’s US Personal Consumption Expenditure Price Index inflation report, as this will provide the best indicator on where the US dollar should trade ahead of the July Federal Open Market Committee meeting.

“A hot inflation print would support the US dollar,” he added.

At 6pm, the local note ended at 4.6640/4.6685 against the greenback compared with 4.6760/4.6805 on Monday.

At the close, the local note was firmer versus the British pound at 5.9326/5.9383 from Monday’s closing of 5.9487/5.9551 and improved against the Japanese yen at 3.2425/3.2458 from 3.2624/3.2661.

However, it depreciated vis-a-vis the euro to 5.1043/5.1092 from 5.0917/5.0971.

The local note also weakened against other Asean currencies except for the Thai baht.

The ringgit was marginally lower against the Singapore dollar at 3.4553/4592 from 3.4536/4575 on Monday and depreciated against the Philippine peso to 8.43/8.44 from 8.39/8.40 previously.

It was flat vis-a-vis the Indonesian rupiah at 311.0/311.5 but rose versus the Thai baht to 13.2155/2342 from 13.2733/2954.