Ringgit retreats as investors opt for dollar safe haven

KUALA LUMPUR: The ringgit retreated from its gains last week to open lower against the US dollar on Monday amid mixed sentiment in the market as investors continue to seek the safe-haven greenback, a dealer said.

At 9 am, the local currency eased to 4.6400/6445 against the greenback from Friday’s close of 4.6360/6390.

Kenanga Research said in a note that global market uncertainties, on top of the United Kingdom’s sterling crisis and a looming recession in Europe, have boosted demand for the US dollar, further pressuring emerging currencies, including the ringgit.

The continued hawkishness of the US Federal Reserve (Fed), coupled with the red-hot US labour market, may spark another cycle of sell-off in riskier assets with the greenback rallying, it added.

"The ringgit may continue to trade above the 4.6000 threshold level against the greenback as the US dollar index is expected to trade above the 112.0 level," the research house said.

On the home front, investors are also keeping a close watch on the upcoming Budget 2023 scheduled to be tabled on Friday, which may partially cap the ringgit’s losses.

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

It rose against the British pound to 5.1657/1707 from 5.1728/1762 last week, gained against the Japanese yen to 3.2049/2082 from 3.2103/2126, and appreciated versus the Singapore dollar to 3.2323/2359 from 3.2343/2368.

However, the local note inched down vis-a-vis the euro to 4.5495/5539 from Friday's close of 4.5428/5458. - Bernama

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