KUALA LUMPUR: The ringgit continued to retreat against the US dollar in the early session on Tuesday ahead of a decision on the US debt ceiling.
At 9.09 am, the local note fell to 4.6040/6080 versus the greenback compared with Monday’s closing of 4.6030/6060.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said he expects the US dollar/ringgit pair to trade in a narrow range today at around RM4.60.
He said the risk of a delay in the decision-making on the US debt ceiling could result in the forex market remaining cautious, leading to sustained demand for safe-haven currencies such as the US dollar.
"So all eyes will be on Capitol Hill as the June 5 deadline is nearing,” he added.
In the meantime, the ringgit was traded lower against a basket of major currencies.
It eased to 3.2862/2893 against the Japanese yen from 3.2820/2844 at Monday’s closing, declined against the euro to 4.9341/9384 from 4.9330/9363, and eased versus the British pound to 5.6928/6978 from 5.6829/6866 yesterday.
The local note was also traded mostly lower against other Asean currencies.
The ringgit depreciated against the Thai baht to 13.2829/2995 from 13.2316/2463 and slid against the Singapore dollar to 3.4041/4075 from Monday’s 3.4016/4043.
It declined against the Indonesian rupiah to 307.4/307.9 from 307.3/307.7 and was unchanged against the Philippine peso at 8.20/8.21.
TAGS: Ringgit, Opening, US debt, Asean currencies, Mohd Afzanizam