Ringgit falls to a 5-year low

RINGGIT closed at 4.449 on Friday after reaching a five year low at 4.4503 at 2pm today.

The local note traded at 4.498  on Jan 4, 2017.

The Malaysian Reserve reported yesterday that the local note was traded mostly lower against a basket of major currencies.

Rakuten Trade Research VP Thong Pak Leng said higher inflation in the US will trigger more aggressive interest hikes there, hence increasing the demand of the greenback.

He also projected that the US dollar’s strengthening would continue in the near term amid fresh recession worries, as the world’s largest economy reported inflation hitting a 40-year high in June. – TMR / pic TMR File