Ringgit extends downtrend in early trade

KUALA LUMPUR,. The ringgit extended its downtrend against the US dollar on Friday morning, as the stronger greenback sentiment curbed risk appetite for the local currency, a dealer said.

At 9am, the ringgit stood at 4.0520/0580 against the US dollar from Thursday’s close of 4.0380/0410.

Axi chief global market strategist Stephen Innes said the dollar soared last night following a surge in the United States’ 10-year bond yields on growing optimism over a sustainable recovery.

He said the declining oil prices as profit-taking emerged ahead of the Organisation of the Petroleum Exporting Countries’ March meeting has also influenced a pull back in the ringgit.

“Therefore, I expect the ringgit to trade on a defensive bias against the US dollar,” he told Bernama.

Meanwhile, the ringgit was traded mostly higher against other major currencies.

It rose against the Singapore dollar to 3.0512/0569 from 3.0663/0697 on Thursday, strengthened versus the British pound to 5.6696/6784 from 5.7231/7289, and increased against the euro to 4.9272/9357 from 4.9340/9385.

The local currency, however, depreciated vis-a-vis the Japanese yen to 3.8144/8204 from 3.8076/8108 previously. — Bernama


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