KUALA LUMPUR, May 6 — The ringgit reversed yesterday’s gains and ended lower against the US dollar on Friday, tracking other Asian currencies as the risk aversion wave by equities as well as higher US Treasury yields saw investors pile into US dollars.
At 6pm, the local currency fell to 4.3650/3680 against the greenback from Thursday’s close of 4.3465/3515.
OANDA senior market analyst Asia Pacific Jeffrey Halley said the US dollar reversed higher, unwinding all its post-Federal Open Market Committee (FOMC) meeting losses as risk aversion swept other asset markets and US 10-year yield rose and closed above 3.0 per cent.
“Support at 102.50 held beautifully on a closing basis, signalling more US dollar gains ahead,” he added.
Halley further said that Asian regional currencies would remain under pressure from a stronger US dollar and diverging monetary policies.
“The ringgit has risen 0.60 per cent to 4.3750 against the dollar and still has 4.4500 written all over it,” he said.
At the close, the ringgit was traded mostly higher against a basket of major currencies.
It strengthened versus the Singapore dollar to 3.1523/1549 from 3.1549/1588 on Thursday, appreciated against the Japanese yen to 3.3453/3479 from 3.3517/3558 yesterday, and improved vis-à-vis the British pound to 5.3868/3905 from 5.4622/4685 the day before.
However, the local note settled easier against the euro, falling to 4.6138/6170 from 4.6056/6108 yesterday.
— Bernama
