Malaysia: Ringgit extends slide against USD as flight to safety continues

• May 21, 2019

KUALA LUMPUR: The ringgit continued its slide against the US dollar at the opening today with higher US yields and the worsening US-Sino trade war has boosted appetite for the safe-haven currency.

At 9 am today, the ringgit was quoted at 4.1780/1810 against the greenback compared to 4.1750/1780 from last Friday’s close.

Bank Islam Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said from the technical standpoint, ringgit is still in the oversold territory.

However, in view of the ongoing trade conflict between the US and China and the blacklisting of China’s tech giant Huawei, a suggestion of a technical rebound seems to be somewhat far-fetched, he said.

“The ringgit is expected to trade within a range of RM4.16 to RM4.18 in view of the uncertainty on the impact to the technology sector, as the sector is also deemed important to the Malaysian economy,” he told Bernama.

Meanwhile, the ringgit traded mixed against a basket of major currencies.

The local note was lower against the Singapore dollar at 3.0372/0398 compared with 3.0335/0368 from last Friday’s close and fell against the euro to 4.6647/6685 from 4.6601/6652.

It appreciated against the Japanese yen to 3.7913/7950 from 3.8051/8093 and rose vis-a-vis the British pound to 5.3173/3216 from 5.3265/3324 on last Friday. – Bernama

Source: https://www.thestar.com.my/business/business-news/2019/05/21/ringgit-extends-slide-against-usd-as-flight-to-safety-continues/#OasgzPiPpxCsf0cp.99