by BERNAMA / pic by MUHD AMIN NAHARUL
KUALA LUMPUR – The ringgit retreated from yesterday’s gains to open slightly lower against the US dollar today on renewed concerns about the global economic outlook, said an analyst.
At 9 am, the local note stood at 4.3555/3585 versus the greenback from Tuesday’s close of 4.3545/3570.
Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the series of corporate earnings annoucement for the first quarter has been mixed, suggesting a challenging outlook as companies need to contend with rising business cost, especially that of raw material and labour.
“The geopolitical situation has been unsettling with Russia is expected to halt their gas exports to Poland and Bulgaria.
“Lockdown fears are also looming in Beijing as it started its mass testing requirement due to rising COVID-19 cases,” he told Bernama.
Mohd Afzanizam said the external front has been unfriendly to emerging market currencies as market participants are anticipated to seek shelter against the safe-haven currencies such as the US dollar and yen.
“As such, the ringgit should lingers around its resistant level of RM4.36 today,” he added.
Meanwhile, the ringgit was traded mostly higher against a basket of major currencies.
The local note slid versus the Japanese yen to 3.4142/4168 from Tuesdays’s close of 3.4065/4087 yesterday but rose against the euro to 4.6356/6388 from 4.6532/6559.
It appreciated against the Singapore dollar to 3.1584/1609 from yesterday’s close of 3.1697/1720 and increased vis-a-vis the British pound to 5.4797/4834 from 5.5359/5391.