May 16, 2021

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The ringgit is closing lower against the US dollar


Kuala Lumpur: The ringgit ended lower against the dollar for the second day in a row today, amid lower risk appetite.

A trader said that the local currency retreated from a stronger opening, supported by higher Brent crude prices.

At 6 pm, the local currency was steady at 4.1200 / 1260 against the dollar from Monday’s close of 4.1030 / 1055.

The value of the ringgit fell further on Tuesday as sentiment across Asia remained weak amid new Covid-19 waves hitting India and some Southeast Asian countries, threatening millions of lives and economic recovery in the region, said Adam Muhammad Rahim, an economist at Bank Islam Malaysia. .

“This outpaces positive economic data points such as Malaysia’s Manufacturing PMI, which rose to a nine-year high of 53.9 in April 2021 from 49.9 in March 2021, the highest since July 2012,” he told Bernama.

Meanwhile, Stephen Innes, SPI Asset Management’s global managing partner, said it was an alarming day to reopen the Malaysian narrative with an ominously pending Motion Control 3.0 order like a dark cloud over the local capital market.

“The ringgit has been circulating poorly as Covid fears have returned their ugly head again, leaving the government with little choice but to shut down sectors of the economy,” he said.

On another note, he added that the US dollar was trading stronger against the G10 currencies, as foreign exchange traders might be ready to get the huge US jobs report on Friday which could lead to higher US bond yields and this could affect the ringgit sentiment significantly. Larger. .

Meanwhile, the ringgit also traded lower against the other major currencies.

It fell against the Singapore dollar to 3.0852 / 0902 from 3.0803 / 0831 on Monday and down against the euro to 4.9473 / 9549 from 4.9441 / 9479.

The local currency fell against the yen to 3.7653 / 7711 compared to previously 3.7463 / 7490 and was lower against the British pound to 5.7181 / 7273 from 5.6835 / 6882. – Bernama