KUALA LUMPUR: The ringgit continued its downward trajectory for the fourth consecutive day as bleak US economic data drove US dollar demand.
At 6 pm, the ringgit eased to 4.3700/3780 against the US dollar from 4.3350/3400 at the close on Wednesday.
AxiCorp global chief market strategist Stephen Innes said a 180-degree pivot in risk sentiment had triggered a steep decline in global equity markets, sending investors back under the umbrella of the greenback.
“The horrific drop-off in US economic activity through March-April is breathtaking and softer oil prices continue to shake the trees, triggering higher cross-asset volatility,” he said.
According to US Commerce Department data released Wednesday, retail sales slumped a record 8.7% in March due to Covid-19’s economic impact, the biggest month-on-month tumble since the data was first tracked in 1992.
Meanwhile, the US Federal Reserve reported that the US industrial production fell 5.4% during the same month, its worst performance since 1946.
China’s first-quarter gross domestic product to be released tomorrow is also in focus.
Besides the US dollar, the ringgit also traded lower against a basket of major currencies.
It declined vis-a-vis the Singapore dollar to 3.0604/0673 from 3.0487/0529 and weakened against the yen to 4.0549/0635 from 4.0371/0425 on Wednesday.
The local note was also lower against the British pound at 5.4503/4620 compared with 5.4270/4350 yesterday and decreased against the euro to 4.7489/7593 from 4.7390/7462. – April 16, 2020, Bernama
