Kuala Lumpur – The Malaysian ringgit ended higher against most Association of Southeast Asian Nations (ASEAN) currencies but weakened slightly against the US dollar amid growing concerns over European fiscal stability.

As of 6 p.m. local time on Monday, the ringgit was quoted at 4.0845/0890 against the US dollar, a modest decline from last Friday’s close of 4.0820/0870. The slight depreciation occurred amid renewed market unease sparked by a sharp selloff in French government bonds last week, raising concerns about France’s public finances.

Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, attributed the ringgit’s performance to broader risk-off sentiment prevailing in global markets. He noted that the US Dollar Index gained momentum as investors sought safer assets amid worries over fiscal and political instability in parts of Europe.

“The euro fell to a 17-month low following news of a snap election in Spain,” Mohd Afzanizam said. Such developments added pressure on the European currency and contributed to the ringgit’s relatively stable but narrow trading range against the US dollar.

Within the regional currency basket, the ringgit showed mixed movements. While it strengthened against most ASEAN peers, the overall trend reflected cautious market sentiment, given the ongoing uncertainties in global markets related to fiscal conditions and political events in Europe.

The latest fluctuations underline the sensitivity of emerging market currencies, including the ringgit, to shifts in global risk appetite and geopolitical developments, particularly those affecting major economies such as those in the eurozone.