Ringgit continues downtrend, opens lower against US dollar

(Bernama) – The ringgit extended its downtrend from yesterday to open lower against the US dollar on the strengthening of the greenback amid heightened worries about the US-China trade dispute, dealers said.

At 9.05am, the ringgit was trading at 4.2120/2150 against the greenback from 4.2110/2150 on Tuesday.

The United States will levy an additional 5% tariff on US$300 billion worth of Chinese goods starting Sept 1, according to reports.

The tax, originally set at 10%, will now take effect at 15%.

The ringgit was also tracking the Chinese yuan which continues to dip against the US dollar following the trade dispute.

On Aug 5, the Chinese yuan reportedly dropped to its lowest level in over a decade, when it was worth over seven per US dollar.

“The bearish skew remains intact as the ringgit is being held hostage by a weaker Chinese yuan as the stronger US dollar has its predictable wrecking ball effect in Asian capital markets compounding the already negative trade war effect,” said VM Markets Pte Ltd managing partner Stephen Innes.

Meanwhile, the ringgit was traded mixed against other major currencies.

The local unit was slightly easier against the Singapore dollar at 3.0337/0370 from 3.0330/0370 on Wednesday but mildly recovered against the yen to 3.9743/9783 from 3.9798/9847.

It was traded higher versus the euro at 4.6686/6723 from 4.6704/6753 yesterday but was weaker vis-a-vis the British pound at 5.1441/1482 from 5.1353/1419.