Ringgit ends lower on forex risk aversion

The local note was lower against other major currencies. — Reuters pic
The local note was lower against other major currencies. — Reuters pic

, Sept 5 ― The ringgit ended lower against the today as traders shifted to safe-haven currencies such as the greenback and Japanese yen on risk aversion in the foreign exchange market, dealers said.

At 6pm, the local unit eased to 4.1460/1500 against the greenback from 4.1370/1420 on Tuesday.

Oanda Head of Trading Asia- Stephen Innes said the global emerging markets’ tumult was showing few signs of abating ahead of the US tariff day of reckoning. 

“‘Hit the bid’ has been a common theme across the Malaysian government securities curve as the market had little choice than to cut risk and short bonds in anticipation of offshore selling,” he told Bernama. 

Meanwhile, Bank Negara has maintained the Overnight Policy Rate at 3.25 per cent after the two-day Monetary Policy Committee (MPC) meeting.

“The focus today was the MPC meeting and as expected Governor Datuk Nor Shamsiah Mohd Yunus did not rock the boat,” said Innes.

“Traders are placing long dollar hedges and wait calmly for better days with the ringgit tracking towards RM4.15 per dollar,” he added.

Meanwhile, the local note was lower against other major currencies.

It depreciated against the dollar to 3.0052/0094 from 3.0050/1100 on Tuesday and eased against the euro to 4.7986/8040 from 4.7803/7877.

The local note declined against the yen to 3.7154/7200 from 3.7136/7191 and fell against the British pound to 5.3031/3103 from 5.3016/3100 yesterday. ― Bernama

Source: The Malay Mail Online

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