KUALA LUMPUR (July 19): The ringgit was traded lower on Tuesday (July 19), taking its cue from deteriorating global sentiment amid recession risk in the US and the energy crisis in Europe.
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At 10.22am, the local currency had fallen to 4.4555/4580 versus the greenback from Monday’s close at 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 currency trading. Apart from that, the rise in sub-variant Covid-19 cases in Asia is a worry, especially in China, given its Covid zero 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 and the Europe energy crisis, would further dampen risk appetite.
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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-a-vis the euro to 4.5130/5155 from 4.5223/5254 on Monday, and went up against the Japanese yen to 3.2226/2246 from 3.2203/222.-BERNAMA