Ringgit gives up gains to close lower on Sept 29 on continued US dollar strength

Ringgit gives up gains to close lower on Sept 29 on continued US dollar strength
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KUALA LUMPUR (Sept 29): The ringgit reversed earlier gains to close lower against the US dollar on Thursday (Sept 29), as market sentiments continued to favour the greenback due to global uncertainties, said an analyst.

At 6pm, the local currency depreciated to 4.6380/6425 against the greenback, from Wednesday’s close of 4.6285/6310.

The local currency opened slightly higher at 4.6250/6290, against the greenback.

“Markets are tough now, and the US dollar is considered a safe-haven asset to park money; therefore, investors are flocking to buy the greenback.

“This is the reason why the US dollar is up against all currencies, not only the ringgit; investors are selling British pounds and euros due to uncertainties such as global recession fears and an energy crisis (in Europe),” the analyst said.

The ringgit was also traded easier against a basket of major currencies.

It fell vis-a-vis the euro to 4.4951/4995 from 4.4184/4208 at Wednesday’s close, and eased against the British pound to 5.0392/0441 from Wednesday’s 4.9409/9436.

The local note also depreciated against the Japanese yen to 3.2050/2084 from 3.1974/1993, and declined versus the Singapore dollar to 3.2228/2264 from 3.1954/1975 previously.