KUALA LUMPUR (Nov 29): The ringgit retreated from its gains last week to open lower against the US dollar on Tuesday (Nov 29), weighed by a strengthening greenback and declining crude oil prices, an analyst said.
At 9am, the local note had eased to 4.5000/5100 against the US dollar from last Friday’s close at 4.4795/4890.
The market was closed on Monday in conjunction with a special public holiday announced by Prime Minister Datuk Seri Anwar Ibrahim last Thursday.
SPI Asset Management managing director Stephen Innes said traders were seen seeking shelter under the safe-haven dollar amid global recession concerns, while awaiting US Federal Reserve chair Jerome Powell’s speech on rate hikes on Wednesday.
“The demand for the greenback kicked into gear after a chorus of Fed speakers turned up the hawkish tone on rate hikes on Monday, likely setting the table ahead of Powell’s speech,” he told Bernama.
Meanwhile, Innes noted that oil prices remained volatile as news flows oscillated between supply increases and supply cuts by the Organization of the Petroleum Exporting Countries (OPEC).
At the time of writing, the benchmark Brent crude oil price had fallen 0.46% to US$82.81.
At opening, the ringgit was traded mixed against a basket of major currencies.
The local note dropped versus the Singapore dollar to 3.2628/2705 from 3.2573/2645 at last Friday’s close, and slipped against the yen to 3.2425/2500 from 3.2118/2188 previously.
However, it appreciated versus the pound to 5.3852/3971 from 5.4094/4209 last Friday, and increased vis-a-vis the euro to 4.6530/6633 from 4.6551/6650 previously.-BERNAMA