KUALA LUMPUR: The ringgit retreated from yesterday’s gains to end lower against the US dollar today on technical correction, as the greenback edged higher on safe-haven buying after Democrats seized control of the US Senate.

However, the Democrat-controlled Senate was generally perceived to be positive for economic growth globally and riskier assets but negative for the US dollar, dealers said.

At 6 pm, the local currency stood at 4.0350/0410 versus the greenback compared with Wednesday’s close of 4.0080/0130.

FXTM market analyst Han Tan said the ringgit fell alongside most other Asian currencies on Thursday, as the US dollar enjoyed some reprieve.

“Although the US dollar/ringgit pair did not sustain its sub-4.00 presence seen earlier in the week, the overall downtrend for the currency pair remains intact.

“The greenback is expected to continue exploring more of its downside in the aftermath of the so-called “Blue Wave” (Democrats), which should allow Asian currencies to pursue multi-year highs,” he told Bernama.

Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the ringgit was on technical correction as markets weighed the political and Covid-19 situations in Malaysia.

The ringgit was also traded lower against other major currencies.

It fell against the Singapore dollar to 3.0508/0563 from 3.0440/0480 on Wednesday and slipped versus the euro to 4.9501/9583 from 4.9443/9516.

The local note eased marginally vis-a-vis the Japanese yen to 3.8955/9021 from 3.8954/9022 yesterday and weakened against the British pound to 5.4848/4941 from 5.4685/4757. -Bernama