Ringgit weakens versus US dollar as global uncertainties intensify

KUALA LUMPUR: The ringgit was traded easier against the US dollar at today's opening with demand for the greenback improving on the back of global political and economic uncertainties, an economist said.

At 8 am, the ringgit weakened to 4.3850/3995 against the US dollar from last Friday's close of 4.3800/3850.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said market sentiment remained cautious as traders continued to digest its potential impact on the broader economy as the US President-elect will be inaugurated in January next year.

"There is also a sense of frustration over China's economic stimulus measures announced last week, which fell short of details to boost domestic demand," he told Bernama.

Mohd Afzanizam added that from a technical standpoint, the ringgit is already oversold, indicating that its downside risks are limited.

"However, as market sentiments remain cautious, the demand for the US dollar will continue to remain prevalent with the US Dollar Index (DXY) rising to 105.007," he said.

Meanwhile, the ringgit was traded mixed against a basket of major currencies.

It rebounded vis-a-vis the British pound to 5.6628/6815 from 5.6943/7255 recorded last Friday, and inched up against the euro at 4.6977/7132 from 4.7347/7606 from 4.7317/7365 previously.

It, however, dipped marginally versus the Japanese yen to 2.8675/8774 from 2.8637/8795.

The local note traded mostly easier versus Asean currencies.

It appreciated against the Thai baht to 12.7880/8411 from 12.8947/12.9767 previously but fell versus the Philippine peso to 7.52/7.55 from last Friday's 7.47/7.51 and slipped against the Indonesian rupiah to 279.7/280.8 from 278.6/280.3 previously.

It also weakened vis-a-vis the Singapore dollar to 3.3022/3136 from 3.3207/3394 at Friday's close.