Malaysia's ringgit closes lower against US dollar

Malaysia's ringgit closes lower against US dollar

Malaysia ringgit
A money changer displays a handful of 100 Malaysian ringgit bills at his office in downtown Kuala Lumpur. (AFP PHOTO/TENGKU BAHAR)

KUALA LUMPUR: The ringgit closed lower on Tuesday (May 15) against the US dollar as the greenback strengthened across emerging markets in Asia, said a dealer. 

At 6.00pm, the ringgit was quoted at 3.9540/9580 against the US dollar from Monday’s close of 3.9480/9530.

"Today was indeed a day of reflection, coupled with some unsettling noise in the markets over the past week, and as investors took a breather after coming out relatively unscathed following the recent Malaysian general election. 

"On the other hand, the better tone of US bond yields helped boost the US dollar," he told Bernama.  

It was reported that US yields on 10-year Treasuries increased one basis point to 3.02 per cent and the highest in almost three weeks.

Innes said the local bond market was also quiet, reflecting the overall wait and see attitude permeating the market today.

"We do not anticipate investors flocking back to the ringgit altogether, as the unpopular Goods and Services Tax issue needs to be resolved,” he added. 

He said the ringgit is expected to have a bit of a bumpy ride over the next few weeks, but as soon as the government lays all its policy cards on the table, the local note could trade stronger on the backdrop of the robust economy, stable external factors and firmer oil prices.

Meanwhile, former Bank Negara Malaysia Governor, Tan Sri Zeti Akhtar Aziz today said the ringgit will perform better, when investors’ confidence is restored both in the economy and country, as she believed the economic fundamentals are still intact.

She is a member of the Council of Eminent Persons established by Prime Minister Mahathir Mohamed on Saturday.

The ringgit also traded lower against a basket of major currencies.

It eased against the Singapore dollar to 2.9578/9617 from 2.9564/9598 on Tuesday and fell versus the yen at 3.5972/6081 from 3.5966/6003.

The local currency depreciated vis-a-vis the British pound to 5.3565/3635 from 5.3555/3599 and declined against the euro to 4.7155/7211 from 4.7111/7163.

Source: Bernama/de