Ringgit extends downtrend against US dollar

KUALA LUMPUR: The ringgit extended its downtrend against the US dollar at the opening today on lack of demand as sentiment remained highly cautious amid heightened uncertainty over US-China trade deal, said a dealer.

At 9am, the ringgit was trading at 4.1730/1770 against the greenback from yesterday’s close of 4.1640/1670.

Axi Trader Asia-Pacific market strategist Stephen Innes said latest headlines which said US President Donald Trump is expected to sign the Hong Kong bill passed by the Senate could potentially complicate the US-China trade outlook.

The bill is aimed at protecting human rights in Hong Kong amid pro-democracy protests.

“The ringgit has fallen as the regional basket is caught on the same boat as local traders opting on the side of caution.

“From a cross-regional currency perspective, factoring the gold-Thai baht correlation and Thailand’s substantial foreign exchanges reserves, it suggests the Thai baht will continue to feature as the regional haven umbrella,” said Innes in a note today.

Meanwhile, the local note also traded lower against other major currencies.

The ringgit was weaker against the Singapore dollar at 3.0619/0659 from 3.0579/0613 yesterday and depreciated against the yen to 3.8507/8555 from 3.8399/8437.

It fell against the euro to 4.6216/6277 from 4.6066/6104 and went down vis-a-vis the British pound to 5.3944/4000 from 5.3749/3808.