KUALA LUMPUR: The ringgit extended its loss to the US dollar yesterday to its lowest in eight months amid rising concerns of higher inflation and heightened risks to growth, which continue to plague the global and local economic environment.
The ringgit’s fall has been in tandem with the overall appreciation of the greenback against major currencies. The local currency was traded at a low of 3.3276 to the US dollar and closed at 3.316 as at 5pm, down 0.45% from last Friday’s close.
The ringgit was traded at the year’s high of 3.132 against the dollar on April 23. An analyst from a local brokerage firm said the weakening ringgit was likely due to the lower inflationary pressure with the drop in global oil prices and the recovery of the dollar against major currencies.
The analyst said the ringgit would likely to be traded at a narrow range following the lack of fresh leads from the market and the likelihood of Bank Negara Malaysia (BNM) maintaining interest rates as the inflationary pressure tapered off.
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