KUALA LUMPUR, Nov 11 — The ringgit closed sharply lower against the US dollar today weighed down by declining oil prices and the return of expectations the US Federal Reserve System (Fed) will raise interest rate in December.
At 6pm, the local unit’s onshore trading was at 4.2800/2900 against the greenback from 4.2700/2790 yesterday.
The ringgit’s weakness was also in line with other emerging Asian currencies.
FXTM Vice President of Market Research, Jameel Ahmad, said the declines seen in Asian currencies were being linked to the likely impact of trade throughout the continent if the US president-elect, Donald Trump, were to enforce protectionist trade policies.
“The expectations Fed will raise interest rate in December helped strengthen the US dollar and put pressure on emerging markets’ currencies,” he said.
The ringgit also depreciated in more than 12 years in offshore markets, as foreign investors sold off government bonds.
According to data, the local currency’s one-month non-deliverable forwards fell by 3.7 per cent from the previous close to 4.5395 per US dollar, its weakest since September 2004.
The local unit was traded mixed against other major currencies.
It went up against the Singapore dollar at 3.0372/0458 from 3.0409/0495 yesterday. It declined sharply against the British pound to 5.4168/4299 from 5.2905/2030 yesterday.
The ringgit rose against the yen to 4.0199/0308 from yesterday’s 4.0207/0307.
It fell against the euro to 4.6519/6632 from 4.6505/6624 yesterday. — Bernama
