KUALA LUMPUR, Feb 2 — The ringgit closed the first trading day in February easier against the US dollar on lack of catalysts.
It fell to 4.0430/0460 against the greenback from 4.0400/0450 last Friday.
The local market was closed on Monday for Federal Territory Day.
Axi chief global market strategist Stephen Innes said market sentiment was cautious as pointers were erring on the side of caution on two fronts.
“The US stimulus looks set to happen but the market remains uncertain on the size. The other issue is despite the People’s Bank of China suggesting they are not going to raise interest rates, forex traders think it’s still too early to sound the all-clear on the rate hike front in China.
“Higher interest rates will make the yuan more attractive than regional peers and could hurt commodity prices because they could be a drag on the Chinese economy,” he told Bernama.
The ringgit was mostly lower against other major currencies.
It slightly declined against the Singapore dollar to 3.0371/0400 from Friday’s 3.0369/0416 and marginally lower against the Japanese yen to 3.8530/8563 from 3.8524/8575 previously.
The local currency decreased against the British pound to 5.5332/5382 from 5.5207/5291 and appreciated vis-a-vis the euro to 4.8787/8827 from 4.8945/9021.
— Bernama
