While investors flocked to safe-haven assets due to concerns over the prospects for global interest rates, the ringgit resumed its downward trend against the US dollar to settle lower today.
In comparison to Monday's closing rate of 4.4755/4805, the local currency declined against the dollar to 4.4850/4895 at 6 o'clock.
The local note is still having trouble, according to Stephen Innes, managing director of SPI Asset Management, despite aggressive rhetoric from the US Federal Reserve (Fed) and market expectations for increased Fed funds rates.
"The ringgit could drop even further if the US (economic) data stay solid and inflation remains high," he told Bernama. "This would push the market to continue debating on more than 6% for the Fed funds rates.
Investors are also likely to be watching any escalation in the Russia-Ukraine conflict, according to ActivTrades trader Anderson Alves, since US Treasury Secretary Janet Yellen has threatened China with "serious consequences" if it gives Moscow material help in breach of US sanctions.
According to him, "any concrete action by China in favour of Russia might be perceived as a significant basis for a derisk and deleverage from Asian exposures."
In addition, the ringgit largely depreciated versus a basket of major currencies.
The local currency lost value against the Singapore dollar at Monday's end, falling to 3.3247/3285 from 3.3162/3204; it also lost value against the euro, dropping to 4.7572/7620 from 4.7212/7265; and it lost value against the British pound, falling to 5.4152/4206 from 5.3576/3636.
It increased from 3.2816/2855 to 3.2799/2835 in relation to the Japanese yen. The Bernama
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