Profit-taking drags ringgit lower


KUALA LUMPUR – The ringgit slipped against the US dollar at opening on Monday, pressured by profit-taking activities after appreciating quite steadily in two last sessions.

At 9 am, the local note eased to 4.1460/1500 versus the greenback from 4.1390/1415 at Friday’s close.

Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said technical indicators are also signaling that the ringgit is in overbought condition.

The focus this week would be on Bank Negara Malaysia’s (BNM) Monetary Policy Committee meeting statement on overnight policy rate (OPR) to be released Wednesday.

“The market would want to see the latest assessment by BNM on the economy following the tabling of Budget 2022 on Friday.

‘In the medium term, ringgit looks positive as economic prospect is expected to be better next year alongside higher commodity prices,” Mohd Afzanizam said.,” he told Bernama.

The ringgit was traded higher against a basket of major currencies.

It improved against the Singapore dollar to 3.0722/0754 from 3.0762/0783 at Friday’s close, and rose against the Japanese yen to 3.6343/6381 compared with 3.6403/6425.

The local note strengthened against the euro to 4.7903/7949 vis-a-vis 4.8232/8261, and eased against the British pound to 5.6684/6739 versus 5.7089/7124 previously.