RINGGIT remained weak against the US dollar throughout the day as uncertainty over a hung Parliament and China’s surge in Covid-19 cases left investors less interested in Monday’s trading session.
At 6pm, the local currency eased to 4.5770/5850 against the US dollar’s 4.5490/5565 at Thursday’s close.
The market is closed on Friday in conjunction with the 15th General Election.
The Managing Director of SPI Asset Management, Stephen Innes, said the weak ringgit was driven by a spontaneous reaction to political risk.
In addition, Asian risk appetite declined after news of curfews in several major cities in China.
The world’s second-largest economy reported the country’s first Covid-19 death in nearly six months, raising concerns about more stringent measures that may be introduced to contain infections.
“China’s curfew has blocked the narrative wave of ringgit recovery last week,” he told Bernama.
Innes said that although the ringgit reacted negatively to the hung Parliament, in the long term, the coalition government could provide more consultative policies and more checks and balances, which would have a positive impact on the market.
This week, the market will also closely monitor the September Leading Index and the October inflation rate which will be released on Friday.
Malaysian inflation dropped to 4.5 percent in September.
The ringgit, however, traded mostly higher than the major currencies.
It eased against the Singapore dollar to 3.3107/3169 from 3.3091/3150 at Thursday’s close, but rose against the euro to 4.6827/6909 from 4.7146/7224, jumped against the Japanese yen to 3.2278/2337 from 3.2581/2637 previously, and rose against the British pound to 5.4036/4131 from 5.4069/4159. – Named
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