Ringgit closes unchanged against US dollar amid gold price crash

At 6pm, the local unit remained at yesterday’s close of 4.1900/1950 against the greenback. — AFP pic
At 6pm, the local unit remained at yesterday’s close of 4.1900/1950 against the greenback. — AFP pic

KUALA LUMPUR, Aug 12 — The ringgit ended unchanged against the US dollar, as uncertainty reigned in forex markets after gold prices fell dramatically to below US$1,900 (RM7,965) per ounce from its record high of US$2,075 per ounce today.

At 6pm, the local unit remained at yesterday’s close of 4.1900/1950 against the greenback.

AxiCorp chief global market strategist Stephen Innes said the shell-shocking moves on gold prices left currency traders second-guessing their weaker US dollar views as the 10-year US Treasury yield shifted higher to above 0.60 per cent.

However, Innes believed the ringgit would be firmer next week, banking on the US-China video conference on August 15 when both economies would discuss bilateral issues and the Phase-1 trade deal inked in January this year.

“While it appears we have dodged the US-China trade talk risk, my view on a stronger ringgit next week is still predicated on an official reaffirmation of the US-China Phase-1 trade deal,” he told Bernama.

At the closing bell, the ringgit was traded higher against a basket of major currencies.

It appreciated against the British pound to 5.4675/4745 from 5.4864/4942 yesterday and strengthened against the Singapore dollar to 3.0506/0547 from 3.0546/0591.

Vis-a-vis the yen, the local note advanced to 3.9232/9290 from 3.9495/9553, while against the euro, it improved to 4.9300/9375 from 4.9383/9459 yesterday. — Bernama

Related Articles