Ringgit slips against US dollar amid retreat from AI investments
Analysts linked the decline to reduced risk appetite as investors weighed AI valuations, US elections and forthcoming jobs figures.
The ringgit weakened against the US dollar on November 3, ending at 4.0735/0775 at 6pm compared with 4.0695/0735 at the previous close, as investors pulled back from artificial intelligence-related investments.
Stephen Innes, managing partner at SPI Asset Management, told Bernama that reduced appetite for risk was the main factor behind the decline. He said Malaysia’s semiconductor sector and technology investment flows had benefited from AI spending, but that exposure could also weigh on the currency when investors retreat.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said trading against the dollar remained within a narrow range. Investors were considering the possibility of an AI investment bubble alongside the forthcoming US midterm elections and US employment figures due on Friday. He noted differing views among Wall Street firms over whether AI infrastructure investment had become excessive.
The ringgit strengthened against the yen, reaching 2.5762/5789 from 2.5766/5793, and the euro, at 4.5587/5631 compared with 4.5652/5697. It weakened against sterling to 5.4658/4712 from 5.4621/4675.
Among regional currencies, the ringgit lost ground against the baht, rupiah and Philippine peso. It gained against the Singapore dollar, moving to 3.1807/1841 compared with the previous closing rate of 3.1825/1862.
