Negative sentiment pushes ringgit down

The expected US Federal Reserve's interest rate hike and the plunge in China's stock market are the two main reasons.

KUALA LUMPUR: The ringgit closed lower against the US dollar today on negative sentiment and in line with other Asian currencies, dealers said.

At 5pm, the ringgit was quoted at 4.2480/2560 against the greenback from 4.2105/2155 yesterday.

A dealer said although the local note traded downwards, it rebounded to the 4.248 level from 4.270 early this morning.

“Analysts believe that the weakening of the ringgit, which breached the key psychological level of 4.00 currently, was due to negative sentiment.

“It includes the expectation of the US Federal Reserve’s interest rate hike and the plunge in China’s stock market,” the dealer added.

He said traders were hoping to see the ringgit recover on China’s central bank’s decision to cut interest rates, in supporting the local bourse.

The ringgit was also traded lower against other major currencies.

It fell against the Singapore dollar to 3.0310/0372 from 3.0120/0167 yesterday, and weakened versus the yen to 3.5548/5627 from 3.5223/5267.

The domestic currency also depreciated against the pound sterling to 6.6600/6743 from 6.6484/6580 and edged downward vis-a-vis the euro to 4.8733/8838 from 4.8631/8693.

– BERNAMA