KUALA LUMPUR, July 24 — The ringgit extended its downtrend to end the week easier against the US dollar today, as the rising Covid-19 cases in the United States weighed on investors’ risk appetite, a dealer said.
Despite firmer global oil prices, the local currency finished at 4.2620/2660 against the greenback compared with 4.2560/2610 at 6 pm yesterday.
A dealer said investors withdrew their positions on worries that the spike in US Covid-19 cases might hurt the country’s economic outlook, thus pushing the greenback to its lowest in nearly two years on Thursday.
Although Washington had announced it would double up the stimulus measure to tackle the impact of Covid-19 on the economy, it somehow sparked worries over mounting debt level, he said.
“This cautious greenback-sentiment has clouded over other currencies, including emerging currencies like the ringgit.
“In addition, the recent US-China dispute on consulate closure has also put the dollar in check. This (influence) will likely continue until some positive development is happening,” he told Bernama.
On Thursday, the United States recorded over 1,100 deaths due to Covid-19 for the third consecutive day as the outbreak strained hospitals in several major states.
According to the Centre for Systems Science and Engineering (CSSE) at Johns Hopkins University, the number of Covid-19 cases in the US topped 4 million on Thursday, while the national death toll increased to 143,820.
Meanwhile, the ringgit was traded lower against other benchmark currencies.
It fell against the Singapore dollar to 3.0764/0797 from 3.0734/0774 yesterday and decreased versus the Japanese yen 4.0068/0117 from 3.9716/9767 on Thursday.
The local unit depreciated against the British pound to 5.4268/4336 from 5.4166/4251 yesterday and weakened vis-a-vis the euro to 4.9426/9481 from 4.9331/9398 previously. — Bernama
