KUALA LUMPUR: The ringgit pared yesterday’s losses to close firmer against the US dollar, bolsterd by commercial demand, dealers said. At 5 pm, the local note was quoted at 3.7740/7770 against the greenback from 3.7825/7855 on Monday.
A dealer said apart from month-end commercial demand for ringgit, short covering on the ringgit emerged today after it hit a new low above the 3.78 level yesterday.
The ringgit fell to a 10-year low in cautious trading yesterday following concerns over Greece’s debt default and jitters over a possible Fitch Ratings downgrade on Malaysia.
“Correction may not last long, as the US Federal Reserve is expected to raise interest rates later this year, thus there’s a higher chance for greenback to continue its upward momentum,” he said.
The local note closed lower against other major currencies except against the British pound.
It weakened further against the Singapore dollar to 2.8028/8061 from 2.8004/8045 and depreciated against the yen to 3.0889/0921 from 3.0762/0799 previously.
The local currency declined against the euro to 4.2076/2114 from 4.2016/2061 on Monday but managed to advance against the British pound to 5.9286/9348 from 5.9400/9459 yesterday. – BERNAMA