KUALA LUMPUR, Feb 25 — The ringgit extended its slide against the US dollar today amid intense speculation over possible realignment among the country’s political forces.
The sentiment was further weakened by the issuance of further travel advisory due to the Covid-19 outbreak.
At 6pm, the local note depreciated to 4.2310/2350 against the greenback from 4.2240/2270 yesterday.
AxiCorp chief market strategist Stephen Innes said more travel alerts, the latest coming from Taiwan which raised its travel alert level for South Korea has definitely blunt sentiments among investors.
Meanwhile, Hong Kong had also reported a massive decline in both exports and import in January.
“If this is a foreshadow of things to come, I think investors across the globe will need to buckle in as the worst has yet to come in the Asean economic front,” he told Bernama.
Yesterday, Bank Negara Malaysia said that it is closely monitoring conditions in the financial markets, in light of the recent developments surrounding the country’s political landscape.
The central bank noted that while the ringgit movements will continue to be market-determined, BNM’s market operations will ensure sufficient liquidity and orderly financial market conditions.
At the close, the ringgit was traded lower against other major currencies.
It slipped against the Singapore dollar to 3.0256/0289 from 3.0126/0152 yesterday and declined against the yen to 3.8324/8371 from 3.7941/7978 yesterday.
The local note retreated vis-a-vis the euro to 4.5902/5962 from 4.5678/5728 and slipped against the pound to 5.4969/5038 from 5.4464/4520. — Bernama