KUALA LUMPUR: The ringgit continued to trend lower against the US dollar on Tuesday pending the release of Malaysia’s inflation data tomorrow and FTSE Russell’s decision to review the Malaysian government bonds’ participation in the World Government Bond Index (WGBI).
At 6pm, the local note fell to 4.1800/1830 from 4.1770/1800 against the greenback at Monday’s close.
Axi Trader Asia-Pacific market strategist Stephen Innes said the ringgit is trading in a defensive posture ahead of FTSE Russell’s decision, which may continue to pressure outflows as foreign investors get a little nervous.
In April, FTSE Russell said it would review the nation’s government bonds’ participation in WGBI, citing concerns about market liquidity, and placed Malaysia on its fixed-income watch list.
“It’s a bit odd as the trade war tone has been fine and the yuan is a bit stronger, but overall the ringgit continues to hold current ranges,“ he told Bernama.
Overall, the ringgit traded mostly lower against other major currencies.
The local currency weakened against the euro to 4.5967/6017 from 4.5863/5913 yesterday, as well as against the British pound to 5.2054/2095 from 5.1970/2024 on Monday.
It eased against the Singapore dollar to 3.0360/0386 from 3.0301/0325 but rose against the yen to 3.8794/8832 from 3.8849/8891 previously. — Bernama
