KUALA LUMPUR: The ringgit ended lower against the greenback on Monday, as markets shifted toward safe-haven currencies amid rising geopolitical uncertainty after the US attack on Venezuela over the weekend, an analyst said.
At 6 pm, the local currency fell to 4.0695/0745 versus the US dollar from Friday’s close of 4.0515/0560.
IPPFA Sdn Bhd's director of investment strategy and country economist, Mohd Sedek Jantan, said the Venezuela situation boosted demand for liquid reserve assets, particularly the US dollar.
"The move was reinforced by firm US growth momentum, which has pushed back expectations of interest rate cuts in the United States and kept yield differentials supportive of the greenback. As a result, emerging market currencies, including the ringgit, face short-term pressure despite stable domestic fundamentals," he told Bernama.
At the close, the ringgit traded lower against a basket of major currencies.
It depreciated against the Japanese yen to 2.5932/5965 from 2.5817/5848 last Friday, weakened versus the British pound to 5.4706/4774 from 5.4509/4569, and dipped vis-à-vis the euro to 4.7540/7598 from 4.7488/7540 previously.
The local note traded lower against ASEAN peers.
It inched down vis-à-vis the Indonesian rupiah to 243.0/243.5 from 242.2/242.6, and fell against the Singapore dollar to 3.1603/1644 from 3.1502/1540.
It slipped versus the Thai baht to 12.9891/13.0109 from 12.8996/9201, and was almost flat against the Philippine peso at 6.88/6.90 from 6.88/6.89 previously. - Bernama
