KUALA LUMPUR, July 19 — The ringgit was lower in early trade today, taking a cue from the deteriorating global sentiment amid the recession risk in the United States and the energy crisis in Europe.
At 10.22am, the local currency fell to 4.4555/4580 versus the greenback from Monday’s close of 4.4520/4550.
SPI Asset Management managing partner Stephen Innes said weaker sentiment is expected to dominate this week’s trading, especially with the US Federal Reserve (Fed) in the blackout period.
“There will be no guidance from the Fed which will influence the currency trading. Apart from that, the rise in the Covid-19 subvariant cases in Asia is a worry especially in China, given its zero-Covid policy, and it hurts other currencies tied to the yuan, including the ringgit,” he said.
Innes said other factors such as the European Central Bank meeting later this week and the Europe energy crisis would further dampen risk appetite.
The ringgit was traded higher against a basket of major currencies.
The local currency inched up against the Singapore dollar at 3.1882/1904 from 3.1884/1908 on Monday and appreciated versus the British pound to 5.3190/3220 from 5.3326/3362 previously.
It also improved vis-à-vis the euro to 4.5130/5155 from 4.5223/5254 yesterday and went up against the Japanese yen to 3.2226/2246 from 3.2203/222.
— Bernama
