KUALA LUMPUR: The ringgit was marginally lower against the US dollar and all major currencies as traders remained on the sidelines due to geopolitical fears, a dealer said.
At 9am, the local note was traded at 4.4335/4375 against the greenback from Monday’s close of 4.4330/4380.
The dealer said the weak ringgit was in line with the safe-haven currency, the dollar, which was also traded lower over North Korea-Syria tensions.
“This has weighed down on the US treasury yields and we are expecting the US Federal Reserve to delay its decision not to increase interest rates for now,” the dealer said.
However, dealers expect the ringgit to draw strength from better oil prices coupled with Malaysia’s improved foreign exchange reserves against the US dollar. The reserves rose by US$400 million to US$95.4 billion as at March 31.
They suggested that the outflow of foreign capital could have reversed in March while the requirement to convert 75% of export proceeds might also have helped.
The local note was traded lower against other major currencies.
It fell against the Singapore dollar to 3.1533/1566 from 3.1531/1571 on Monday and weakened against the yen to 4.0006/0060 from 3.9851/9910.
The ringgit strengthened against the British pound to 5.5069/5140 from 5.4947/4036 but was lower against the euro at 4.6942/6998 from 4.6897/6954 yesterday.