KUALA LUMPUR (July 19): The ringgit traded lower on Tuesday (July 19), taking inspiration from deteriorating global sentiment amid recession risk in the United States and energy crisis in Europe.
As of 10:22 a.m., the local currency had fallen to 4.4555/4580 against the greenback since Monday’s close at 4.4520/4550.
Stephen Innes, managing partner of SPI Asset Management, said weaker sentiment is expected to dominate trading this week, especially with the US Federal Reserve (Fed) during the blackout period.
“There will be no guidance from the Fed, which will influence currency trading. Apart from that, the increase in cases of Covid-19 sub-variants in Asia is a concern, especially in China, given its zero Covid policy, and it hurts other yuan-linked currencies, including the ringgit,” he said.
Innes said other factors, such as the European Central Bank meeting and the energy crisis in Europe, would further reduce risk appetite.
The ringgit was trading higher against a basket of major currencies.
The local currency appreciated slightly against the Singapore dollar at 3.1882/1904 against 3.1884/1908 on Monday, and appreciated against the pound sterling at 5.3190/3220 against 5.3326/3362 previously.
It also improved against the euro to 4.5130/5155 from 4.5223/5254 on Monday, and rose against the Japanese yen to 3.2226/2246 from 3.2203/222. .