KUALA LUMPUR, April 16 — The ringgit continued its downward trajectory for the fourth consecutive day as bleak US economic data drove US dollar demand.
At 6pm, the ringgit eased to 4.3700/3780 against the US dollar from 4.3350/3400 at the close on Wednesday.
AxiCorp global chief market strategist Stephen Innes said a 180-degree pivot in risk sentiment had triggered a steep decline in global equity markets, hence sending investors back under the umbrella of the greenback.
“The horrific drop-off in US economic activity through March-April is breathtaking and a softer oil prices continue to shake the trees, triggering higher cross-asset volatility,” he said.
According to US Commerce Department data released Wednesday, retail sales slumped to a record 8.7 per cent in March due to COVID-19’s economic impact, the biggest month-on-month tumble since the data was first tracked in 1992.
Meanwhile, the US Federal Reserve reported the US industrial production fell 5.4 per cent during the same month, its worst performance since 1946.
China’s first-quarter gross domestic product to be released tomorrow is also in focus.
Besides the US dollar, the ringgit also traded lower against a basket of major currencies.
It declined vis-a-vis the Singapore dollar to 3.0604/0673 from 3.0487/0529 and weakened against the yen to 4.0549/0635 from 4.0371/0425 on Wednesday.
The local note was also lower against the British pound at 5.4503/4620 compared with 5.4270/4350 yesterday and decreased against the euro to 4.7489/7593 from 4.7390/7462. — Bernama