Ringgit retreats in early trade on stronger dollar

Overall, the ringgit traded higher against a basket of major currencies.

KUALA LUMPUR: The ringgit was lower against the US dollar in the early session today as buying sentiment for the local note was hampered by a stronger greenback.

At 9.06am, the ringgit stood at 4.1180/1210 from Thursday’s 4.1130/1160.

A dealer said the European Central Bank’s (ECB) move to keep policy unchanged has triggered worries among investors that the US Federal Reserve may take a less aggressive approach on their interest rate.

He said all eyes are on the Federal Open Market Committee and Bank of Japan meetings next week, on whether to aggressively ease monetary policy or hold on.

“Looking at the current lack of trading incentives, the ringgit may move in a limited range,” he said.

Overall, the ringgit traded higher against a basket of major currencies.

It was stronger against the Singapore dollar at 3.0109/0149 from 3.0116/0143 yesterday and rose against the yen to 3.7888/7922 from 3.8048/8086.

The local currency also gained versus the British pound to 5.1281/1335 from 5.1314/1372 but was lower vis-à-vis to the euro at 4.5903/5941 from 4.5765/5815 previously.