KUALA LUMPUR, Jan 19 — The ringgit ended lower against the US dollar on Wednesday on weak demand due to higher risk appetite for the greenback, said an analyst.
At 6pm, the local note traded easier at 4.1925/1950 versus the US dollar from 4.1815/1835 at Monday's close.
The market was closed yesterday for Thaipusam public holiday.
Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the sharp rise in the 10-year US treasury yield to more than 1.8 per cent and China’s move to lower its interest rates amid the slowing economy were the key factors for the weakening ringgit.
"This is because the US Federal Reserve is seen to be raising its benchmark interest rate fairly soon, perhaps in March this year.
"As such, Bank Negara Malaysia's (BNM) Monetary Policy Committee meeting tomorrow is expected to provide more clues on how the Malaysian central bank would react to inflation this year," he told Bernama.
Overall, the local note was traded mixed against a basket of other major currencies.
The ringgit ended lower versus the Singapore dollar to 3.1086/1095 from Monday’s close of 3.1020/1039 and depreciated against the Japanese yen to 3.6600/6625 from 3.6523/6544.
However, it strengthened against the British pound to 5.7018/7036 from 5.7207/7234 on Monday and increased vis-a-vis the euro to 4.7553/7575 from 4.7774/7796 previously.
— Bernama
