KUALA LUMPUR (Sept 7): The ringgit opened at its lowest level versus the US dollar since the Asian financial crisis back in 1998, as more investors shifted to safe havens due to the uncertain global economic outlook.
At 9.01am on Wednesday (Sept 7), the local currency had fallen to 4.5010/5035 against the greenback, from Tuesday’s close at 4.4970/4500.
ActivTrades trader Dyogenes Rodrigues Diniz said the market was more volatile than usual recently, due to escalating tension between Russia and the West, culminating in Russia deciding to cut off gas supplies to Europe indefinitely.
“In the meantime, the US ISM non-manufacturing purchasing managers’ index data for the month of August recorded a much higher-than-expected reading, which increased buying pressure for the greenback that has already been on an uptrend in the past few months.
“With data pointing to high inflation and low unemployment in the US, many expect the US Federal Reserve to maintain the current upward trajectory when it comes to interest rates, with a further rise expected in the next meeting,” he said in a note on Wednesday.
Meanwhile, the ringgit was traded higher against a basket of major currencies.
The local unit appreciated against the Singapore dollar to 3.1965/1987 from Tuesday’s close at 3.2021/2044, and rose against the yen to 3.1451/1473 from 3.1741/1762.
The ringgit also strengthened against the pound to 5.1671/1700 from 5.2156/2191, and increased against the euro to 4.4515/4540 from 4.4759/4788.-BERNAMA