KUALA LUMPUR: The ringgit closed lower against the US dollar on Tuesday due to profit-taking, as traders and investors opted to lock in recent gains, said an analyst.
At 6 pm, the local note eased to 4.1985/2000 against the greenback from Monday’s close of 4.1945/2040.
Nonetheless, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid expects the ringgit to improve even as other emerging market currencies weaken against the greenback, as the positive impact from the RON95 fuel subsidy rationalisation continues to support the local note.
"The subsidy rationalisation should enhance credit rating agencies’ assessment of Malaysia’s fiscal position.
"This signals the government’s commitment to fiscal consolidation, which helps to reduce sovereign credit risks and should support Malaysia’s current A3/A- sovereign rating,” he told Bernama.
At the close, the ringgit was traded lower against a basket of major currencies.
It declined to 2.8441/8453 against the Japanese yen from 2.8364/8430 at Monday’s close, fell to 5.6701/6721 versus the British pound from 5.6630/6758 yesterday, and eased to 4.9546/9564 against the euro from 4.9390/9502 previously.
The local note, however, traded mixed against ASEAN currencies.
It appreciated against the Indonesian rupiah to 251.5/251.8 from 252.5/253.1 on Monday and edged up to 7.33/7.33 against the Philippines’ peso from 7.35/7.37 yesterday.
However, it depreciated to 3.2724/2738 versus the Singapore dollar from 3.2688/2764 yesterday, and slipped to 13.1900/2001 against the Thai baht from 13.1890/2243 previously. - Bernama
