Ringgit extends downtrend against US dollar

KUALA LUMPUR: The ringgit extended its downtrend against the US dollar at the opening today as the greenback resumed its sturdy position across the board.

At 9am, the local note was quoted at 4.1350/1450 compared with yesterday’s close of 4.1320/1370.

AxiCorp chief global market strategist Stephen Innes said the firmer demand for the US dollar was triggered by its safe haven appeal amid deteriorating market sentiment and liquidity conditions.

“On the local front, given the significance of inflation to both Bank Negara Malaysia’s policy and bond inflows, the ringgit could trade tentatively ahead of this afternoon’s August Consumer Price Index (CPI) release,” he said in a note today.

Besides that, easier oil markets due to rising Covid-19 concerns in Europe and some minor concerns around the FTSE Russell’s World Government Bond Index (WGBI) potential decision to exclude the Malaysian Government Securities (MGS) are also weighing the ringgit sentiment.

The ringgit however traded higher against other benchmark currencies.

It rose against the Singapore dollar to 3.0231/0315 from 3.0293/0337 on Tuesday and gained versus the yen to 3.9340/9439 from 3.9514/9570.

The local currency rose against the British pound to 5.2593/2733 from 5.2836/2908 and improved against the euro to 4.8293/8426 from 4.8497/8560.