KUALA LUMPUR: The ringgit weakened against the US dollar today after the market received a signal that incoming Treasury secretary Janet Yellen will affirm her support for a stronger dollar.
At the close, the local note stood at 4.0500/0540 against the greenback from 4.0350/0380 at the close last Friday.
Axi chief global market strategist Stephen Innes said the US dollar is firmer, reflecting the step back in risk.
“The incoming White House chief of staff, Ron Klain, has set out Joe Biden administration’s initial plans.
“No surprise that tackling Covid-19 is top of the list, but Klain’s note also shows Biden ready to quickly unwind by executive order many of President Trump’s policies,” he added.
Locally, Innes said that Bank Negara Malaysia’s Monetary Policy Committee meeting scheduled for tomorrow will influence the currency performance.
“I think a rate cut remains a possibility. If they do cut, it will be of one-and-done variety for this year and not signal a shift to an overt easing policy, so the currency market will not react negatively,” he said.
Against other major currencies, the local note finished mostly higher except vis-a-vis the yen.
It strengthened against the Singapore dollar to 3.0378/0417 from 3.0386/041 at Friday’s close and appreciated vis-a-vis the pound to 5.4784/4855 from 5.5029/5086 previously.
The ringgit firmed against the euro to 4.8847/8903 from 4.8977/9021 last week, while against the yen, it retreated to 3.9010/9056 from 3.8918/8962. — Bernama
