Ringgit trades lower on US asset tapering, Evergrande debt crisis

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KUALA LUMPUR: The ringgit traded lower against the US dollar at the opening bell today due to the possibility that the United States Federal Reserve (US Fed) would taper its bond purchases and the highly probable debt default by China’s largest property players, said an analyst.

At 9 am, the local note fell to 4.1870/1910 from 4.1835/1850 at Tuesday’s close.

Bank Islam chief economist Dr Mohd Afzanizam Abdul Rashid said the heightened uncertainties have led to a sudden surge in interest in safe-haven currencies.

“However, vaccination rates are rapidly increasing and the reopening of the economy is occurring globally.

“This necessitates the US Fed to withdraw some — if not all — of the monetary stimulus to reflect the current state of the economy,” he told Bernama.

Therefore, he said there could be a slight rebound in the ringgit movement later today.

At the opening, the ringgit was traded mostly higher against a basket of major currencies.

The ringgit climbed versus the British pound to 5.7173/7228 from 5.7272/7293 at Tuesday’s close, rose vis-a-vis the Singapore dollar to 3.0928/0962 from 3.0971/0984 and appreciated to 4.9063/9110 versus the euro from 4.9102/9119 yesterday.

However, the local note depreciated against the yen to 3.8321/8362 from 3.8181/8198 previously. – Bernama



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