KUALA LUMPUR: The ringgit traded lower against the US dollar today amid increased demand for safe-haven assets, particularly the US dollar, as market participants followed closely the directions taken by central banks such as the People’s Bank of China (PBoC) and the Bank of England (BoE).
At 6 pm, the local note ended at 4.6385/6425 against the greenback compared with 4.6265/6350 at the close yesterday.
Bank Muamalat Malaysia Bhd chief economist and social finance head Dr Mohd Afzanizam Abdul Rashid said the latest move by the PBoC to cut its policy rate by 10 basis points had reinvigorated the notion of a slowing global economy.
“Moreover, possible monetary tightening by the BoE on Thursday would cement the view that restrictive global monetary conditions would soon take a toll on global growth,” he told Bernama.-Bernama