Ringgit extends downward momentum

Ringgit notes are seen at a money changer in Kuala Lumpur June 20, 2018. — Bernama pic
Ringgit notes are seen at a money changer in Kuala Lumpur June 20, 2018. — Bernama pic

KUALA LUMPUR, May 10 — The ringgit extended its downward trend to close lower against the US dollar today, tracking most emerging currencies amid uncertainties over the US-China trade negotiations later today, dealers said. 

At 6pm, the ringgit was lower at 4.1570/1600 against the greenback compared with 4.1520/1550 at yesterday’s close.

FXTM’s market analyst Han Tan said US President Donald Trump’s unexpected tweets about higher US tariffs on Chinese imports which were subsequently levied today, weighed on sentiment as it would hit exporter currencies, including the ringgit.

On the local front, the weakening of ringgit was also contributed by foreign fund outflows, said Phillip Capital Management senior vice-president (Investment) Datuk Nazri Khan Adam Khan. 

He said year-to-date, Malaysia recorded the largest fund outflow in the region.

It was reported that Malaysia recorded the highest portfolio outflow in 10 months in April at RM11.2 billion, bucking the trend of portfolio flows into emerging markets.

“However, on the long-term perspective, Malaysia is fundamentally stable, including in the banking system. We hope Bank Negara Malaysia will come out with something attractive to ensure the ringgit stability and could trade at the 4.10 level, but this will take time. 

He said the unveiling of the “Shared Properity” approach to mark the Pakatan Harapan government first anniversary, aimed at increasing the people’s purchasing power and eliminate the income and wealth gaps, could shed some light and show some positive direction for the economy and ringgit moving forward.

The ringgit was also traded lower against other major currencies.

The local note traded easier against the Singapore dollar at 3.0503/0534 from yesterday’s 3.0447/0486, and depreciated against the British pound to 5.4091/4147 from 5.3984/4040.

The local currency weakened vis-a-vis the yen to 3.7843/7880 from 3.7831/7862, and decreased against the euro to 4.6683/6733 from 4.6482/6528 yesterday. — Bernama

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