Ringgit extends downward momentum

: The ringgit extended its downward trend to close lower against the today, tracking most emerging currencies amid uncertainties over the US- trade negotiations later today, dealers said.

At 6pm, the ringgit was lower at 4.1570/1600 against the greenback compared with 4.1520/1550 at Thursday’s close.

FXTM’s market analyst Han Tan said US President Donald Trump’s unexpected tweets about higher US tariffs on imports which were subsequently levied on Friday, weighed on sentiment as it would hit exporter currencies, including the ringgit.

On the local front, the weakening of ringgit was also contributed by foreign fund outflows, said Phillip Capital Management senior vice-president (Investment) Datuk Dr Nazri Khan Adam Khan.

He said year-to-date, recorded the largest fund outflow in the region.

It was reported that Malaysia recorded the highest portfolio outflow in 10 months in April at RM11.2 billion, bucking the trend of portfolio flows into emerging markets.

“However, on the long-term perspective, Malaysia is fundamentally stable, including in the system. We hope Bank Negara Malaysia will come out with something attractive to ensure the ringgit stability and could trade at the 4.10 level, but this will take time.

He said the unveiling of the “Shared Properity” approach to mark the Pakatan Harapan government first anniversary, aimed at increasing the people’s purchasing power and eliminate the income and wealth gaps, could shed some light and show some positive direction for the economy and ringgit moving forward.

The ringgit was also traded lower against other major currencies.

The local note traded easier against the dollar at 3.0503/0534 from Thursday’s 3.0447/0486, and depreciated against the British pound to 5.4091/4147 from 5.3984/4040.

The local currency weakened vis-a-vis the yen to 3.7843/7880 from 3.7831/7862, and decreased against the euro to 4.6683/6733 from 4.6482/6528 yesterday. – Bernama

Source: The Sun Daily

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