KUALA LUMPUR, Oct 2 — The ringgit retreated from its recent gains to close lower against the US dollar today on profit-taking activities, said a dealer.
At 6pm, the local currency was traded at 4.1620/1660 versus the greenback compared with 4.1470/1520 yesterday.
AxiCorp chief global market strategist Stephen Innes said the lack of the US stimulus package bill was a major risk aversion trigger for the Asia currencies but more idiosyncratic to the ringgit was the fallout from the US banning imports of palm oil from FGV Holdings Bhd due to apparent labour issues.
“With oil getting hammered overnight, I expect the ringgit to take on a more defensive posture, compounded by a drop in liquidity due to China’s Golden Week exaggerating price action on any order going through,” he told Bernama.
As at 6.30pm, Brent crude oil price declined 4.18 per cent to US$39.22 (RM163) per barrel.
Meanwhile, the ringgit was traded lower against other major currencies.
It declined against the Singapore dollar to 3.0502/0543 from 3.0426/0473 yesterday and slipped against the British pound at 5.3748/3821 from 5.3281/3362.
The local currency also fell against the euro to 4.8766/8830 from 4.8723/8794 and depreciated versus the yen to 3.9582/9631 from 3.9278/9341 previously. — Bernama
