Ringgit weakens as investors look for safe haven currencies

 

KUALA LUMPUR: The ringgit opened lower against the US dollar today, weighed by a stronger greenback on renewed interest for safe haven currencies, an analyst said.

At 9am, the local note stood at 4.4600/4670 versus the greenback from yesterday’s closing rate of 4.4480/4520.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid noted that there is a risk-off mode in the market as the United States banks’ earnings were disappointing during the first quarter of 2023 while the US consumers were feeling pessimistic during April.

“Subsequently, we believe the ringgit could stay weak as demand for safe haven currencies would become dominant,” he told Bernama, adding that the resistance level is at 4.4858 while the support level is at 4.4236.

At the opening, the ringgit traded mostly higher against a basket of major currencies.

It slipped against the Japanese yen to 3.3358/3414 from 3.3231/3264 at the close yesterday but appreciated against the British pound to 5.5353/5440 from 5.5462/5512 and rose vis-a-vis the euro to 4.8962/9039 from 4.9061/9106.

Meanwhile, the local note traded lower against Asean currencies. It was weaker against the Indonesian rupiah at 298.4/299.2 from 297.6/298.2 yesterday and eased against the Singapore dollar to 3.3338/3393 from 3.3293/3328.

The ringgit dropped to 8.02/8.06 against the Philippine peso from yesterday’s close of 8.01/8.02 and went down against the Thai baht to 12.9802/13.0063 from 12.9325/9494. - FMT