KUALA LUMPUR, May 12 — The ringgit fell against the US dollar in the morning session today, weighed down by a high number of Covid-19 cases in recent days, said an analyst.
At 9am, the local currency eased to 4.1240/1280 against the greenback from Tuesday’s close of 4.1160/1210.
ActivTrades trader Dyogenes Rodrigues Diniz said Malaysia was still facing an increase in the number of Covid-19 infections and this has weighed on the domestic unit in recent days.
“If everything remains as it is, the US dollar/ringgit could reach the 4.1500 level in the next few days,” he said in a note.
Meanwhile, SPI Asset Management global managing partner Stephen Innes said the ringgit remained mired by a lopsided recovery, creating a currency tug of war between strong external economic velocity, which boosted exports and lagging domestic services sectors due to the current movement control order.
However, he said the local unit holds the commodity card up its sleeve as higher oil and commodity prices are offering up a modicum of support.
“Expect a quiet trading session ahead of US consumer price index later this evening,” he told Bernama.
At the opening, the ringgit was traded mostly lower against other major currencies.
Against the British pound, it rose to 5.8252/8312 from Tuesday’s close of 5.8171/8259 and decreased against the yen to 3.7911/7955 from 3.7814/7863.
Vis-à-vis the Singapore dollar, the ringgit depreciated to 3.1073/1105 from 3.1027/1085 and rose against the euro to 5.0049/0110 from 5.0071/0140.