Bank Muamalat Malaysia Bhd’s chief economist Afzanizam Abdul Rashid said the US dollar/ringgit pair moved in a tight range today between 4.672 and 4.6803 as Malaysia’s IPI came in higher than expected, rising 0.7% year-on-year in July.

Besides this, the rise in the yuan has also helped lift sentiment for the ringgit. The Chinese currency strengthened after the People’s Bank of China warned that it would not tolerate excessive movements for the note.

He also specified that market sentiments are still fragile ahead of this week’s US inflation data release.

Afzanizam said the unveiling of the 12th Malaysia Plan (12MP) mid-term review (MTR) today indicated that the government remains committed to keeping the fiscal deficit narrowed to between 3% and 3.5% by 2025.

“This would help to lift the value of the ringgit in the mid-term as there will be measures to bolster government coffers via tax policy as mentioned in the 12MP MTR,” he told Bernama.

At 6pm, the local note eased to 4.6725/4.6760 against the greenback from Friday’s close of 4.6745/4.6795.

The ringgit traded lower against a basket of major currencies.

It fell against the euro to 5.0145/5.0183 from Friday’s close of 5.0031/5.0085, went down versus the British pound to 5.8551/5.8595 from 5.8352/5.8414, and depreciated against the Japanese yen to 3.1855/3.1881 from 3.1741/3.1777 previously.

Meanwhile, the local note traded mostly firmer against other Asean currencies.

It dropped vis-a-vis the Singapore dollar to 3.4334/3.4362 from 3.4277/3.4312 at Friday’s close, but slightly improved against the Indonesian rupiah at 304.7/305.1 from 304.9/305.4.

It rose against the Thai baht to 13.1583/13.1755 from 13.1591/13.1787 and was slightly better against the Philippine peso at 8.24/8.25 from 8.25/8.26.