Ringgit ends at 4.50 to the US dollar in 24-year low as greenback trounces world currencies

KUALA LUMPUR: The ringgit ended at the lowest level in 24 years against the US dollar today amid deepening global economic uncertainty and rising US Treasury yields that spurred investors to flock to the greenback, trouncing the world’s currencies in the process, including the ringgit.

At 6.01 pm, the local currency fell to 4.5020/5040 against the greenback from Tuesday's close of 4.4970/4500.

Putra Business School economic analyst associate professor Ahmed Razman Abdul Latiff said another possible reason weighing on the ringgit is because of the energy crisis in Europe due to the Ukraine war.

The ringgit opened today at its lowest level versus the US dollar since the Asian financial crisis back in 1998, as more investors shifted to safe haven assets due to the uncertain global economic outlook.

The ringgit hit 4.5010/5035 this morning.

Commenting on Bank Negara Malaysia’s (BNM) Monetary Policy Committee (MPC) meeting today and tomorrow, Ahmed Razman reckons that BNM will increase another 25 basis points to 2.5 per cent. "In my opinion, BNM will increase another 25 basis points, so the overnight policy rate (OPR) will be 2.50 per cent to counter the rising inflation rate which was 4.4 per cent back in July.”

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

The local unit appreciated against the Singapore dollar to 3.1990/2009 from Tuesday’s close of 3.2021/2044, gained against the British pound at 5.1723/1746 from 5.2156/2191, increased against the euro to 4.4615/4635 from 4.4759/4788 and rose against the Japanese yen to 3.1238/1254 from 3.1741/1762 yesterday. - Bernama