Positive greenback sentiment drifts ringgit lower


KUALA LUMPUR – The ringgit extended yesterday’s downtrend to open lower against the US dollar as positive greenback sentiment curbed demand for the local currency, dealers said.

At 9 am, the local note eased to 4.2375/2410 versus the US dollar from Monday’s close of 4.2290/2320.

A dealer said the greenback strengthened as the 10-year bond yields spiked to a fresh three-year high ahead of the US Consumer Price Index data later this week.

“This somewhat shows that the markets have taken into account the continuation of a hike in inflation, thus indirectly slashing risk appetite for other currencies, including the emerging,” he told Bernama.

The dealer said an extended lockdown in China has also weighed on investor sentiment as it fanned worries that the latest development could slowdown the global economic growth.

Meanwhile, the ringgit was traded mixed against a basket of major currencies.

It fell against the Singapore dollar to 3.1024/1054 from 3.1004/1031 on Monday, and weakened versus the Japanese yen to 3.3776/3806 from 3.3738/3764.

The local unit, however, appreciated vis-a-vis the British pound to 5.5147/5192 from 5.5201/5240 and rose againts the euro to 4.6074/6112 from 4.6210/6243 previously.