Ringgit closes lower against US dollar

KUALA LUMPUR: The ringgit reversed its upward momentum on Thursday last week to close lower against the US dollar today, in tandem with other emerging Asian currencies as the greenback firmed to a seven-month high, dealers said.
At 6pm, the ringgit was quoted at 3.9960/9990 against the greenback from last Thursday's close of 3.9835/9875.
FXTM Global Head of Currency Strategy and Market Research Jameel Ahmad said a number of emerging market currencies across the globe were suffering from the buying momentum for the US dollar, including some of Malaysia's geographical neighbours.
"The US dollar was heavily backed by investors as the US was viewed as far ahead in terms of both economic progress and monetary policy, in comparison with its developed peers.
"Essentially, the US economy and Federal Reserve are offering investors something that other developed economies and central banks are ultimately unable to do, that is, consistency. The Bank of England, European Central Bank and Bank of Japan are all not able to provide this," he said.
On the local front, he said persistent concerns over the resurgence in investor demand for the US dollar, and the negative market impact brought by the ongoing fears over a potential trade war between the US and China had played a leading role behind the ringgit fall.
Jameel expected more losses for the local currency going forward as there are no current indications that the US dollar will experience a reduction in buying demand.
The local unit, however, was traded higher against a basket of currencies.
It advanced against the Singapore dollar to 2.9580/9611 from last Thursday's close of 2.9897/9931 and increased against the British pound to 5.2935/2979 versus 5.3506/3576.
Vis-a-vis the Japanese yen, the local unit improved to 3.6147/6177 from 3.6230/6270 last Thursday and climbed against the euro to 4.6342/6384 from 4.7097/7160. — Bernama