Ringgit slips against US dollar at close

Malaysian ringgit notes are pictured at a money changer in Kuala Lumpur October 29, 2021. — Picture by Shafwan Zaidon

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KUALA LUMPUR, Dec 7 — The ringgit ended easier against the US dollar today amid a lack of domestic catalysts to lift the local currency, traders said.

At 6pm, the local note fell to 4.2320/2330 against the greenback from 4.2310/2340 at yesterday’s close.

A trader said local sentiment was also weighed down by the Health Ministry’s report today that showed an increase in daily Covid-19 cases after several days of a downtrend. 

Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the ringgit was seen appreciating against the US dollar to RM4.2277 but fell to as low as RM4.2352 today, while the US Dollar Index (DXY) remained steady at more than 96 points.

“The People’s Bank of China decided to cut the Reserve Requirement Ratio (RRR) by 50 basis points, suggesting that the path for monetary policy normalisation will be uneven with the US Federal Reserve expected to lead the pack.

“This would give a boost to the US dollar amidst concerns over the spread of the new variant of concern (VOC), which would increase the appeal of safe haven currencies such as the US dollar,” he told Bernama.

Hence, he said, the ringgit was expected to trade in a tight range of around RM4.22 to RM4.23 with RM4.245 being the immediate resistance level.

The local note was traded mixed vis-a-vis a basket of major currencies.

The ringgit depreciated against the Singapore dollar to 3.0974/0986 from 3.0899/0925 at yesterday’s close and strengthened versus the Japanese yen to 3.7221/7230 from 3.7363/7393.

It appreciated against the euro to 4.7699/7710 from 4.7810/7844 yesterday but weakened against the British pound to 5.6133/6147 from 5.6095/6134 at yesterday’s close. — Bernama