THE ringgit weakened in early trade against the US dollar today as demand for the US dollar as safe-haven returned, a dealer said.
AxiCorp chief global market strategist Stephen Innes said the US dollar safe-haven demand will likely thwart any near-term bullish ambitions with the oil prices falling and risk unsettled after US President Donald Trump iced the stimulus deal.
“With the Chinese yuan slightly backpedaling overnight, I expect the ringgit to trade on the defensive mode,” he said in a Oct 7, 2020 note.
At 9.05am today, the local currency was traded at 4.1550/1640 versus the greenback compared with 4.1500/1570 at yesterday’s close.
Meanwhile, the ringgit was mostly higher against other major currencies.
It rose against the Singapore dollar to 3.0491/0568 from 3.0521/0577 on Tuesday, improved against the British pound to 5.3500/3624 from 5.3821/3929 and it was slightly higher against the euro to 4.8742/8865 from 4.8879/8974.
However, the local currency inched down versus the yen to 3.9321/9417 from 3.9303/9373 previously. – Oct 7, 2020
