Ringgit continues downtrend on stronger greenback

KUALA LUMPUR: The ringgit continued its downtrend today, as the US dollar strengthened on the back of positive economic growth data and a steady Federal Open Market Committee’s minutes.

As at 9.04am, the local note weakened to 4.1870/1930 against the greenback from yesterday’s close of 4.1800/1840.

An analyst said besides the stronger greenback, the ringgit is expected to trade weaker clouded by uncertainties over power transition in the Malaysian government as well as the ongoing Covid-19 outbreak.

“Due to weaker external demand, the favouritism for the ringgit has declined. Without a strong local economic support to attract investors, the ringgit is expected to trade in a volatile environment with downtrend bias in the coming week,” he said.

Compared to other major currencies the local note also traded mostly lower.

It slid against the Singapore dollar to 2.9888/9941 from 2.9849/9894 at yesterday’s close, increased slightly against the pound to 5.3924/4018 from 5.3926/3990, but declined against the yen to 3.7361/7421 from 3.7328/7367.

Vis-a-vis the euro, the local note retreated to 4.5169/5251 from 4.5140/5191 yesterday.