Ringgit remains lower against US dollar in early trade

 

KUALA LUMPUR: 

The ringgit remained lower against the US dollar in early trade today as investors remained cautious about global market developments, an analyst said.

At 8.02am, the ringgit eased to 4.4650/4.4750 against the US dollar compared with Tuesday’s close of 4.4675/4.4720.

SPI Asset Management managing partner Stephen Innes said the ringgit might face a jittery start, but anticipated the domestic unit would largely hold steady, given Malaysia’s typically weak correlation with the South Korean won.

South Korean president Yoon Suk-yeol backtracked on his short lived martial law order in the early hours of Wednesday local time after declaring martial law in a surprise late-night address on Tuesday.

He added that today’s focal point would be the China fix, especially after the offshore yuan tested the 7.30 level yesterday.

“The People’s Bank of China has set the onshore yuan fix below 7.20. Any adjustment above this could spell trouble for regional currencies.

“Such a move might be seen as a bearish signal, prompting traders to offload currencies closely tied to China, like the Malaysian ringgit, amid growing unease,” he added.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the US Job Opening and Labour Turnover Survey was lower than expected at 7.744 million in October against consensus estimates of 7.51 million, suggesting the labour market is softening.

At the same time, there is political instability in South Korea following the swift reversal of martial law.

“It is somewhat risk-off mode at the moment, suggesting that the US dollar could be in high demand as traders and investors are seeking protection against market uncertainties,” he noted.

The ringgit traded mostly higher against a basket of major currencies.

It advanced against the British pound to 5.6589/5.6716 from 5.6643/5.6700 on Tuesday, improved against the euro to 4.6923/4.7028 from 4.7003/4.7050 but fell vis-a-vis the Japanese yen to 2.9844/2.9913 from 2.9825/2.9859 yesterday.

The local note also traded mixed against Asean currencies.

It increased against the Singapore dollar at 3.3199/3.3276 from Tuesday’s close of 3.3223/3.3261 and was little changed against the Philippine peso to 7.62/7.64 from 7.62/7.63.

The local unit went down against the Thai baht to 13.0023/13.0398 from 12.9854/13.0042 yesterday but was up against the Indonesian rupiah at 279.9/280.7 from 280.1/280.5 previously. - FMT