Ringgit at 2-year low against dollar

 

RINGGIT

THE ringgit touched a two-year low against the US dollar yesterday on strong buying of the greenback, dealers said.

At 5pm, the ringgit was quoted at 3.6050/6100 against the greenback compared with yesterday’s closing of 3.6005/6035.

It was the lowest level since November 2006, a dealer said.

Investors were preferring to hold the US dollar and investing their funds in the commodities markets due to the uncertainties in the global equity market, the dealer said.

She said the next resistance level for the local unit was at 3.6150 against the dollar.

The ringgit movement continued to be dictated by external factors including the performance of global equities.

Against other major currencies, the ringgit was traded mixed, depreciating against the Singapore dollar to 2.3584/3619 from Tuesday’s 2.3567/3609. It also declined against the euro to 4.5445/5518 from 4.5337/5390 previously.

The ringgit however was higher against the British pound at 5.3931/4020 from 5.4191/4247 and also increased against the Japanese yen to 3.7307/7371 from 3.7373/7420 previously.

INTERBANK RATES

SHORT-term rates closed steady yesterday as Bank Negara Malaysia intervened in the money market to absorb surplus funds, dealers said.

The central bank had earlier forecast a liquidity surplus of RM13.78 billion in the conventional system and RM12.79 billion in Islamic funds.

In the conventional system, Bank Negara called for two tenders to borrow RM2 billion of one-week money and another RM2 billion of 23-day money.

It called for two repo tenders to borrow RM800 million for 30 days and RM400 million for 44 days.

The central bank called for two Al-Wadiah tenders comprising RM2 billion of eight-day money and another RM2 billion of 13-day money.

It also conducted a late conventional tender for RM9.3 billion of one-day money and an Al-Wadiah tender for RM9.2 billion of one-day money.

The exercise reduced the total liquidity surplus to RM9.32 billion in the conventional system and RM9.26 billion in Islamic funds. — Bernama