The ringgit led losses among developing-nation currencies yesterday amid rising demand for the dollar as traders revisited bets for a Federal Reserve rate increase by December following strong housing and retail-sales data.
The ringgit depreciated 0.6 per cent to 4.0275 per dollar, taking its three-day loss to 2 per cent, prices from local banks compiled by Bloomberg show.
It earlier reached 4.0428, the lowest level since July 8. The Bloomberg Dollar Spot Index rose for a fourth day as bets for a Fed rate increase by December climbed to 43 per cent from 9 per cent at the end of June.
Brent crude has fallen 1.8 per cent so far this week to below USD47 a barrel, clouding the outlook for Malaysia.
“There’s a little move away from high-yielders into a more conservative basket,” the report quoted Stephen Innes, a senior trader at Oanda Asia Pacific Pte Ltd in Singapore as saying. “Overall, it’s a soft spot in regional risk appetite. Crude prices have continued to weigh negatively.”
The report said the FTSE Bursa Malaysia KLCI Index of shares fell 0.1 per cent, extending its retreat from the highest close on Monday since April 29.