Uncertain global outlook sees ringgit slip vs US$

KUALA LUMPUR: The ringgit lost ground to the US dollar at the start of trade on Friday, as the greenback continued to strengthen, even as the global risk landscape remains uncertain, dealers said.

At 9am, the ringgit fell to 4.1950/1980 against the greenback from 4.1890/1940 at Thursday’s close.

A dealer said US President Donald Trump’s latest move in the trade war in targeting Mexico’s imports, is pressuring other emerging markets, including Malaysia.

On a related note, Prime Minister Tun Dr Mahathir Mohamad in Japan yesterday proposed a new currency based on gold, as it is more stable as opposed to the current currency trading which is manipulative.

He said by using the precious metal, it could be used to evaluate the exports and import activities among East Asian countries.

The ringgit, meanwhile, traded mostly lower against a basket of major currencies.

It declined against the Singapore dollar to 3.0388/0420 from Thursday’s 3.0368/0409 and depreciated against the Japanese yen to 3.8391/8429 from 3.8182/8239.

The local note, however, strengthened versus the British pound to 5.2895/29491 from 5.2911/2991, but eased against the euro to 4.6699/6753 from 4.6674/6738. – Bernama

Meanwhile, AmBank Research said with trade war being in the headlines, it believes the flows into safe haven assets will continue to support dollar.

At the same time, markets will also be looking at US April’s core PCE data to be released today (consensus: 1.6%y/y; March: 1.6% y/y) which will potentially determine the tone of the US Fed and the policy rate direction.

“Thus, we expect the ringgit to trade between our support level of 4.1776 and 1.1846 while our resistance is pegged at 4.1958 and 4.2020,” AmBank Research said.

Source: TheStar