KUALA LUMPUR:The ringgit continued to depreciate against the US dollar for the third trading day, as higher demand for the US dollar indicated that market participants were sceptical about the prospects of the global economic recovery.
At 6 pm, the local note eased to 4.2505/2515 against the US dollar from 4.2330/2380 at last Friday’s close.
Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) rose to more than 100 points, which signalled that the market was cautious about the global economic recovery outlook.
“Apart from that, China’s first quarter gross domestic product growth at 4.8 per cent was higher than expected but it still suggests that the second largest economy in the world would likely grow at a sub-par level in the near future,” he told Bernama.
He said the hawkish stance by the US Federal Reserve would also affect market sentiments in the near term.
Meanwhile, the ringgit traded mostly lower against a basket of major currencies.
It fell against the Singapore dollar to 3.1228/1240 from 3.1198/1242 last Friday and eased versus the Japanese yen to 3.3569/3579 from 3.3465/3510 previously.
The local currency was a tad higher vis-a-vis the British pound at 5.5303/5316 from 5.5308/5374 last Friday and weakened against the euro to 4.5867/5878 from 4.5776/5830. – Bernama