KUALA LUMPUR, Aug 11 ― The ringgit extended its downtrend against the US dollar on Tuesday as investors are cautious on the second quarter (Q2) gross domestic product (GDP) and the continued spat between the United States and China ahead of their trade talks on August 15.
At 9.31am, the local note stood at 4.2000/2050 against the US dollar, compared with 4.1930/1980 at last yesterday's close.
AxiCorp chief global market strategist Stephen Innes said the local unit has been predictably backpedalling ahead of this week's US-China trade talks.
“Still, more generally, the ringgit has given ground to the US dollar after last Friday’s better than expected US employment report, which has seen US dollar demand pick up across the board.
“Arguably the ringgit bullish sentiment may have gotten too far over its skies to quickly, so traders were also quick to book profits on the first signs of weakness,” he added.
Bank Negara Malaysia will released the Q2 data on Friday.
Overall, the ringgit was traded mostly lower against a basket of major currencies, except versus the euro.
It was weakened against the Singapore dollar to 3.0577/0615 from 3.0515/0558, vis-a-vis the Japanese yen to 3.9585/9636 from 3.9553/9608 and versus the British pound to 5.4915/4985 from 5.4752/4822.
However, the ringgit was appreciated against the euro to 4.9266/9329 from 4.9301/9377 yesterday. ― Bernama