Ringgit retreats as US dollar strengthens

KUALA LUMPUR – The ringgit depreciated as the US dollar regained its strength amidst the European Central Bank (ECB) and Bank of England’s (EoB) dovish tone on inflation.

At 9 am, the ringgit eased to 4.2580/2640 against the greenback from Thursday’s close of 4.2445/2490.

Yesterday, both the ECB and the BoE announced interest rate hikes of 50 basis points.

“The US dollar is higher today as both the ECB and BoE were net dovish to expectations.

“While the broader stronger greenback is an overhang, the predominant theme currently impacting Asian currencies is the uncertainty over the near-term economic outlook in China amid stretched positioning,” said SPI Asset Management managing partner Stephen Innes.