Ringgit slides as investors seek out safe havens

KUALA LUMPUR: The ringgit retreated from Monday’s gains to open lower this morning against the US dollar, as the stronger greenback curbed demand for the local unit, dealers said.

At 9.00am, the ringgit stood at 4.1950/2000 versus the US dollar from 4.1870/1920 recorded at 6 pm on Monday.

The market was closed yesterday for the Maulidur Rasul public holiday.

OANDA Head of Trading Asia-Pacific Stephen Innes said as expected, the local note is looking soft and precariously perched at the critical of 4.20 level in early trade.

“The toxic combination of lower oil prices and a strong dollar, global risk aversion notwithstanding all but suggest we will test the key 4.20 level sooner than later.

“The USD is picking up safe-haven appeal as it appears the US-China trade war will continue to freeze over rather than thaw, given the negative fallout from the APEC meeting last weekend,” he told Bernama.

However, against other major currencies, the ringgit traded mostly higher.

The local currency improved against the Singapore dollar to 3.0491/0534 from 3.0509/0563 on Tuesday, but vis-a-vis the Japanese yen, fell to 3.7180/7234 from 3.7158/7213.

The ringgit rose against the British pound to 5.3646/3714 from 5.3887/3959 and appreciated against the euro to 4.7680/7754 from 4.7845/7910. – Bernama

Source: TheStar