The ringgit retreated from its gains yesterday to open lower against the US dollar today as investors returned to safe haven currencies due to renewed concerns over the current uncertainties in market sentiments, an analyst said.
At 9.01 am, the ringgit stood at 4.3035/3090 against the greenback from Wednesday’s close of 4.2960/3005.
ActivTrades’ trader Dyogenes Rodrigues Diniz said investors were concerned over the stubbornly high inflation in Europe, and many are in a ‘wait-and-see’ mode ahead of the release of the European Union’s (EU) Economic Forecasts and details from the EU Leaders Summit.
“Earlier, the European Central Bank (ECB) said that the expectation is that the fight against inflation will still take a long time and the interest rates could remain high for longer than previously anticipated,” he said in a note today.
Meanwhile, the ringgit traded mostly higher against a basket of major currencies.
The local note inched down against the Singapore dollar to 3.2435/2479 from Wednesday’s close of 3.2472/2511 but strengthened vis-a-vis the Japanese yen to 3.2724/2768 from 3.2872/2909 yesterday.
It had also appreciated against the British pound to 5.1922/1988 from 5.1990/2045 on Wednesday and rose versus the euro to 4.6116/6175 from 4.6203/6252 previously.
