Ringgit extends losses against US dollar

KUALA LUMPUR: The ringgit extended its losses, from this morning, to close lower against the US dollar today, as several external economic uncertainties prompted investors to shift their focus towards safe havens currencies, dealers said.

At 6pm, the local note stood at 4.1350/1390 against the greenback, down 50 basis points, from Monday’s close of 4.1300/1350.

A dealer said that technically, the local currency was currently in an oversold position and would see some rebound activity, moving forward.

He said traders were cautious over external economic developments, including China’s manufacturing Purchasing Managers’ Index, which fell below 50 points in December 2018, and the ongoing US government shutdown, among others.

“Perhaps, foreign investors might have to see values emerging in the ringgit after witnessing an outflow in 2018. Nonetheless, there is no compelling reason for the ringgit to stay strong in view of the uncertainty in the external environment,“ he said.

Meanwhile, the ringgit was mostly lower against major currencies.

The domestic unit appreciated against the British pound to 5.2473/2540 against Monday’s 5.2600/2684 but weakened against the euro to 4.7275/7334 from 4.7227/7300, previously.

It depreciated against the Singapore dollar to 3.0331/0371 from 3.0310/0358 and slipped against the Japanese yen to 3.7950/7997 from 3.7658/7714 on Monday. — Bernama

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