Ringgit Retreats After Three Days Of Gains

By Siti Noor Afera Abu

KUALA LUMPUR, Aug 14 (Bernama) -- The ringgit closed lower today, snapping three consecutive days of gains as profit-taking emerged, with traders opting to lock in earlier gains.

At 6 pm, the local note slipped to 4.2090/2145 from Wednesday’s close of 4.2040/2085.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit recorded a sharp rise earlier in the day, reaching as high as 4.1860 during the morning session, before the US dollar–ringgit pair climbed to 4.2088 later in the day.

He noted that the USDMYR had crossed the psychological threshold of 4.20, but profit-taking activities may have emerged as traders sought to lock in gains.

“At the current juncture, enthusiasm for an interest rate cut by the United States Federal Reserve (Fed) has gained momentum, and it is taking a toll on the US dollar.

“The impression that the Fed might be behind the curve in managing the monetary policy could also have contributed to the weakness in the US dollar,” he told Bernama.

At the close, the ringgit ended mostly lower against major currencies, except the euro, against which it appreciated to 4.9170/9234 from 4.9305/9357.

It fell versus the Japanese yen to 2.8703/8742 from Wednesday’s close of 2.8554/8586 and decreased vis-a-vis the British pound to 5.7146/7220 from 5.7078/7139.

The ringgit traded mostly higher against regional peers.

It strengthened versus the Singapore dollar to 3.2849/2895 from 3.2864/2902 at yesterday’s close, rose versus the Thai baht to 13.0004/0238 from 13.0276/0476, and was higher against the Philippine peso to 7.39/7.41 from 7.41/7.42.

However, the local note depreciated against the Indonesian rupiah to 261.1/261.6 from 259.4/259.8.

-- BERNAMA