KUALA LUMPUR, Sept 26 — The ringgit continued its slide against the US dollar today as investors remained cautious ahead of FTSE Russell’s decision on whether to keep Malaysian bonds in its World Government Bond Index (WGBI).
At 6pm, the local note finished at 4.1930/1980 against the greenback from 4.1880/1920 at yesterday’s close.
Axi Trader Asia-Pacific market strategist Stephen Innes said the impending announcement kept investors in limbo despite Bank Negara Malaysia Governor Datuk Nor Shamsiah Mohd Yunus saying last month that the central bank had had encouraging discussions with the global bond index provider on the possibility of retaining Malaysian bonds in the WGBI.
“However, things can go sideways; and with the announcement occurring at 5pm eastern time (5am local time), that possesses enough liquidity risk and the event should be closely monitored,” he said.
At the close, the ringgit, however, was traded firmer against other major currencies.
It rose against the Singapore dollar to 3.0347/0392 from 3.0401/0434 yesterday and advanced against the Japanese yen to 3.8958/9011 from 3.9013/9061 yesterday.
Vis-a-vis the euro, the local unit strengthened to 4.5842/5914 from 4.6060/6108 while against the British pound, it surged to 5.1658/1736 from 5.2090/2157 yesterday due to the Brexit impasse. — Bernama
