Ringgit closes lower against US dollar on weak buying interests

KUALA LUMPUR: The ringgit extended last Friday's losses to close lower against the US dollar today on weak buying interests, tracking the regional sentiments which remained clouded amid geopolitical and trade tensions, dealers said.

At 6pm, the ringgit was quoted at 3.8865/8905 compared with Friday's close of 3.8785/8815.

OANDA's Head of Trading in Asia-Pacific, Stephen Innes, said the Malaysian bond and currency markets would likely remain quiet but trade defensively as the 14th General Election nears.

"While oil prices continue to support the ringgit, there is no escaping the escalating geopolitical tensions and possible trade war escalation which continues to bubble under the surface," he told Bernama.

He said with a near-term bottom in place around 3.87 for the ringgit, traders were taking to the sidelines waiting for better levels to buy the ringgit.

"However, until the regional risk sentiment improves, the ringgit and other Asian currencies will continue to struggle over the near term.

"We should expect ringgit to consolidate at the upper end of near term ranges between 3.88 and 3.90 against the greenback," said Innes.

The ringgit was traded lower against a basket of major currencies.

It eased against the Singapore dollar to 2.9634/9669 from 2.9573/9603 on Friday and depreciated against the yen to 3.6251/6292 from 3.6042/6080 last Friday.

The ringgit declined against euro to 4.8049/8110 from 4.7837/7878 last week and versus the British pound, it fell to 5.5585/5646 from 5.5393/5451 previously. — Bernama