KUALA LUMPUR, Dec 29 — The ringgit retreated from the previous days’ gains to end lower against the US dollar today amid rising demand for the safe-haven currency as the rally in equities ease heading towards year-end, dealers said.
At 6 pm, the local note fell to 4.1800/1805 versus the greenback from 4.1785/1830 at Tuesday’s close.
Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the US dollar against ringgit pair (USD/MYR) seesawed from as high as RM4.185 to as low as RM4.1800 today.
He said the US dollar appeared to be gaining more steam against major currencies such as the euro, Japanese yen and British pound which has led to the US dollar Index (DXY) rising by 0.12 per cent to reach 96.138 points.
“The USD/MYR has been lingering around the RM4.180 level after it broke the previous support level of RM4.1862. The ringgit can be constructive going forward as fears over Covid-19 Omicron variant has somewhat subsided given the recent studies.
“For now, the ringgit is likely to settle around such level as we close the year 2021 this week. Beyond this, the ringgit may need to see more convincing evidence that the Covid-19 is well contained in order to stage further appreciation,” he told Bernama.
However, the ringgit was traded higher against a basket of other major currencies at close today.
It improved versus the Singapore dollar to 3.0856/0864 from Tuesday’s close of 3.0860/0898, and rose against the euro to 4.7150/7156 from 4.7355/7406 yesterday.
The local unit appreciated vis-a-vis the British pound to 5.6062/6069 from 5.6188/6249 on Tuesday, and increased against the Japanese yen to 3.6348/6355 from 3.6401/6444 previously.
— Bernama
