Ringgit closes lower against US dollar

KUALA LUMPUR: The ringgit closed lower today against the US dollar as the greenback continued its uptrend and there was reduced demand for emerging market currencies amid ongoing trade tensions.
At 6pm, the ringgit was quoted at 4.0040/0070 against the greenback compared with Tuesday's close of 4.0020/0050.
A dealer said the local currency remained under pressure against the broadly stronger US dollar, despite opening higher in the morning session on bargain hunting following yesterday's close that saw it breaching the 4.0 level for the first time since Jan 10.
"With prospects of higher US interest rates boosting the greenback and fuelling concerns of capital outflows from the emerging markets, the ringgit, like many other emerging market currencies, could see further losses.
"Another factor behind the depreciation could be the intensifying global trade tensions which have promoted risk aversion and eroded appetite for riskier currencies. The ringgit has scope to weaken further if the US dollar continues to appreciate and trade fears dent global risk sentiment," he added.
The local unit was traded mostly higher against a basket of currencies, except the euro.
It advanced against the Singapore dollar to 2.9465/9491 from Tuesday's close of 2.9476/9507 and increased against the British pound to 5.2677/2720 versus 5.2734/2778.
The ringgit rose vis-a-vis the Japanese yen to 3.6354/6391 from 3.6431/6469 on Tuesday, but fell against the euro to 4.6298/6349 from 4.6223/6274 yesterday. — Bernama