Ringgit breaches 4.0 amid yuan devaluation

KUALA LUMPUR: The ringgit closed 1.96% lower, breaching the psychological level of 4.0 against the US dollar today, amid China's central bank weakening the midpoint for the yuan for a second day.

At 5pm, the local note was quoted at 4.0375/0415 against the greenback from 3.9600/9630 yesterday.

"Spot yuan eased further today to 6.3870 per dollar compared to yesterday's 6.3231 after China's central bank significantly weakened the (yuan) midpoint.

"The devaluation of the yuan, coupled with volatile commodity prices, prompted selling in regional currencies including the ringgit today," said a trader.

The ringgit, which breached the 4.0 level per dollar for the first time since the Asian financial crisis 17 years ago, was also traded lower against a basket of major currencies.

It fell against the Singapore dollar to 2.8619/8659 from 2.8302/8333 on Tuesday, and eased against the yen to 3.2388/2431 from 3.1723/1752 yesterday.

The local note shed against the pound sterling to 6.2876/2950 from 6.1701/1759 yesterday, and weakened against the euro to 4.4941/4998 from 4.3651/3700 previously. – Bernama