KUALA LUMPUR, Nov 3 — The ringgit eased against the United States dollar today amid a pullback in global AI-related trading and investments.
At 6pm, the local note slipped to 4.0735/0775 against the greenback from yesterday’s close of 4.0695/0735.
SPI Asset Management managing partner Stephen Innes said the ringgit’s weakness was largely driven by broader risk aversion, especially as investors unwound AI-related investments.
He added that Malaysia has been a major beneficiary of the global AI investment boom, particularly through its semiconductor industry and technology-related investment flows.
“The trouble is that this relationship cuts both ways. When investors start pulling back from the AI trade, the ringgit can come under pressure even when the broader US dollar is weakening.
“Therefore, the ringgit is getting caught up in the broader unwinding of the AI trade, and that may remain the bigger influence in the near term,” he told Bernama.
Similarly, Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the ringgit traded within a narrow range against the greenback as traders and investors weighed concerns over a potential AI investment bubble, the upcoming US midterm elections, and Friday’s US jobs data.
“On the AI investment bubble, there seem to be mixed signals among Wall Street firms at a conference in Hong Kong today.
“Some argued that AI infrastructure may have gone overboard, but others pointed to the potential benefits to the economy. Reversing risk appetite in the AI space could mean missing an opportunity to record further gains in investment returns,” he said.
Afzanizam also noted that Brent crude oil prices rose 1.94 per cent to US$106.80 per barrel, as concerns over a possible renewed US attack on Iran following the US midterm elections remained a source of market uncertainty.
“Overall, market sentiments are effectively guarded as there are a lot of moving parts that could easily tilt the balance of risk,” he added.
Against major currencies, the ringgit traded mostly firmer.
The ringgit was marginally higher against the Japanese yen to 2.5762/5789 from 2.5766/5793 at yesterday’s close, inched up versus the euro to 4.5587/5631 from 4.5652/5697, but edged down vis-a-vis the British pound to 5.4658/4712 from 5.4621/4675, previously.
The ringgit was mostly lower against its ASEAN peers.
It slipped versus the baht to 12.0696/0858 from 12.0496/0661 yesterday, inched down against the rupiah to 224.3/224.6 from 224.1/224.4, and fell vis-a-vis the Philippine peso to 6.42/6.43 from 6.39/6.41 previously.
However, it rose against the Singapore dollar to 3.1807/1841 from the previous close of 3.1825/1862.
