KUALA LUMPUR, Jan 29 — The ringgit traded lower against the US dollar on Friday due to the strengthening of the greenback as a safe-haven demand for the currency.
At 9.15 am, the local currency traded at 4.0500/0560 against the greenback from Wednesday’s close of 4.0440/0470.
The local market was closed yesterday for the Thaipusam public holiday.
Axi chief global market strategist Stephen Innes said emerging market stocks and currencies struggled under the weight of snail-pace Covid-19 vaccination rollout both domestically and in the developed market, driving the greenback safe-haven demand.
“Traders expect the ringgit to trade defensively under this narrative,” he told Bernama.
Against other major currencies, the ringgit was traded mixed.
It appreciated against the Singapore dollar to 3.0451/0508 from 3.0491/0520 on Wednesday and rose against the Japanese yen to 3.8763/8825 from 3.8956/8996.
The local currency, however, fell versus the British pound to 5.5558/5617 from 5.5536/5594 and depreciated vis-a-vis the euro to 4.9050/9106 from 4.9021/9131 previously.