Ringgit depreciates further against US$ early Thursday
KUALA LUMPUR: Weak sentiment towards emerging currencies, brought on by speculation of a December US interest rate hike, pushed the ringgit to depreciate further against the greenback in early trade Thursday.
At 9.05 am(0105gmt), the local unit was traded at 4.4500/4600 to the greenback from 4.4400/4450 on Wednesday.
Despite higher overnight crude oil prices, which sometime provided support to the ringgit, investors accumulated position for the US dollar.
The greenback rose to a 14-year high against a basket of currencies following upbeat economic data that showed US economy on track for steady growth.
On the local front, Bank Negara Malaysia yesterday maintained the overnight policy rate at 3.0 per cent and also kept the statutory reserve requirement ratio at 3.5 per cent.
The central bank said it would continue to provide liquidity to ensure the stability of the domestic foreign exchange market.
BNM said the risk of destabilising financial imbalances were contained, but would continue to monitor them.
Against other major currencies, the local unit traded mostly higher.
The ringgit rose against the Singapore dollar to 3.1013/1086 from 3.1136/1175 on Tuesday, strengthened versus the yen to 3.9534/9655 from 3.9993/4.0049, and expanded against the euro to 4.6872/6995 from 4.7117/7175 previously.
However, the ringgit depreciated vis-a-vis the British pound to 5.5327/5473 from 5.4945/5011 yesterday.