KUALA LUMPUR: The ringgit opened lower against the US dollar today as uncertainty in the post-Brexit era prompted speculation that regional central banks may cut interest rates, dealers said.
At 9.05 am, the ringgit fell to 4.1110/1160 against the greenback from Monday’s 4.0910/0010.
Alliance DBS Research said the uncertainty has also led to risk aversion and market volatility.
“In the immediate aftermath following the United Kingdom’s European Union referendum, financial markets have turned risk-off with a significant sell-off in global equities.
“In the currency markets, the British pound and Euro have depreciated significantly while safe-haven currencies such as the US dollar and Japanese yen have appreciated.
“Such sharp currency movements will again have a diverse effect on emerging markets,” it said in a note.
The ringgit opened mostly lower against other major currencies. It declined against the Singapore dollar to 3.0204/0249 from 3.0156/0250 from Monday and fell against the yen to 4.0415/0500 from 4.0104/0214 previously. The local unit was stronger against the British pound at 5.4343/4446 from 5.4508/4675 and eased against the Euro to 4.5295/5371 from 4.5210/55328 previously. --Bernama