KUALA LUMPUR, Sept 25 — The ringgit posted its third consecutive day of losses against the US dollar, as risk-off mood prevailed despite news of China’s planned purchase of more farm products from the world’s largest economy.
At 6pm, the local note closed at 4.1880/1920 against the greenback from 4.1800/1830 at yesterday’s close.
Axi Trader Asia-Pacific market strategist Stephen Innes said although the goodwill gesture from China, foreign exchange traders remained buyers of the US dollar on worries over a potential breakdown in the next US-Sino trade talks set to be held in Washington early next month.
“Indeed, a complete breakdown in trade talks could weaken the Chinese yuan and local currencies like the Malaysian ringgit significantly,” he said in an email to Bernama.
Innes also said the lack of Chinese monetary easing continued to weigh on regional growth and sentiment in the equity markets, making traders less interested in buying the Chinese yuan or other Asian currencies.
The People’s Bank of China (PBOC) governor Yi Gang reportedly said the country is in no hurry to take measures similar to other central banks, such as introducing drastic quantitative easing policies or cutting interest rates.
Overall, the ringgit traded lower against other major currencies.
It fell against the Singapore dollar to 3.0401/0434 from 3.0360/0386 yesterday and slid against the Japanese yen to 3.9013/9061 from 3.8794/8832 yesterday.
Vis-a-vis the euro, the local unit weakened to 4.6060/6108 from 4.5967/6017 while against the British pound, it fell to 5.2090/2157 from 5.2054/2095 yesterday. — Bernama
