Ringgit almost flat against US dollar

KUALA LUMPUR: The ringgit was almost flat against the US dollar at the close today as investors shifted their buying appetite towards safe haven assets such as the greenback amid the expectation that the near-term economic outlook appears to be challenging, said an analyst.

At 6 pm, the local currency stood at 4.3930/3960 against the US dollar compared to 4.3935/3960 at Tuesday’s close.

Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said stagflation risks have become the buzzword these days as inflation is expected to rise amidst stagnant economic growth.

"Therefore, demand for safe haven in particularly the US dollar is expected to be highly sought after. This is given the fact that forex investors would want to seek shelter against risks of slower growth,” he told Bernama.

On Tuesday, the World Bank slashed its global growth forecast by 1.2 percentage points to 2.9 per cent for 2022, warning that Russia’s invasion of Ukraine has compounded the damage from the COVID-19 pandemic, with many countries likely to face recession.

The bank also warns of the rising risk of stagflation.

Meanwhile, the ringgit was traded mixed against a basket of major currencies.

The local note rose slightly against the Singapore dollar to 3.1928/1952 from Tuesday’s close of 3.1936/1957, but depreciated against the British pound to 5.5027/5064 from 5.4963/4994 yesterday.

It strengthened against the yen to 3.2837/2862 from 3.3109/3130 but eased against the euro to 4.7027/7059 from 4.6892/6919. - Bernama