Ringgit weakens to 4.0480 vs US dollar


At 6pm, the local note was quoted at 4.0480/0530 against the greenback, versus 4.0300/0340 at last Friday’s close.

KUALA LUMPUR: The ringgit finished 180 basis points (bps) easier against the US dollar today as investors adopted a cautious stance while waiting for Prime Minister Tan Sri Muhyiddin Yassin’s announcement on the implementation of the Movement Control Order (MCO).

At 6pm, the local note was quoted at 4.0480/0530 against the greenback, versus 4.0300/0340 at last Friday’s close.

In his special address at 6 pm today, the premier said the MCO will be enforced in Penang, Selangor, Kuala Lumpur, Putrajaya, Labuan, Melaka, Johor and Sabah from midnight Jan 13 - 26, 2020, where inter-district movement is prohibited.

Meanwhile, conditional MCO (CMCO) would be enforced in Pahang, Perak, Negeri Sembilan, Kedah, Terengganu and Kelantan from Jan 13 - 26, 2020, while Perlis and Sarawak would undergo the Recovery MCO (RMCO) from Jan 13 - 26, 2020.

In a note released earlier today, Kenanga Research said cautious trading sentiment has been lingering in the local market due to the possible reintroduction of MCO.

"The ringgit is likely to trade on a cautious note this week as investors cast a wary eye on the potential reimplementation of more stringent measures amid worsening domestic COVID-19 situation,” it said.

On the upside, Kenanga Research said the local note was seen to benefit from continuous US dollar weakness on the prospect of the United States (US) Federal Reserve’s reaffirming its conviction to remain status quo.

Technically, the research house said the five-day exponential moving averages (EMA) indicator signalled that the ringgit might chart a slight appreciation against the greenback by 0.1 per cent to 4.026 this week.

"The pair faces an initial support at 4.011, followed by 3.992. Conversely, a sustained rise above 4.043 suggests an extended bearish ringgit trend,” it added.

At close, the ringgit was traded mixed against other major currencies.

It slid against the Singapore dollar to 3.0436/0478 from 3.0420/0459 last Friday and depreciated against the yen to 3.8882/8934 from 3.8813/8863 previously.

Vis-a-vis the pound, the local currency climbed to 5.4616/4687 from 5.4804/4875 at the close last Friday and strengthened against the euro at 4.9236/9309 from 4.9319/9384 previously. - Bernama
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MCO , cautious trading sentiment , ringgit

   

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