KUALA LUMPUR, Aug 14 – The ringgit was lower for the second consecutive day Tuesday against the US dollar as investors moved to a safer haven, amid geopolitical concerns over Turkey that saw its currency, the lira tumble.
At 9 am (0100 gmt), the local note was traded at 4.0930/0970 versus the greenback from yesterday’s close of 4.0900/0950.
A dealer said the situation affects not only the ringgit, but globally, especially emerging markets.
“The tension will be ongoing for quite some time. However, the ringgit will not be severely affected as most of the nation’s debt is in the local unit,” he said.
The dealer said an increase in oil prices would cushion any impact on the ringgit.
The benchmark Brent crude increased to US$72.80 per barrel at 9 am Tuesday.
The ringgit, however, traded mostly lower against a basket of major currencies.
It declined against the Singapore dollar to 2.9743/9777 from 2.9696/9743 on Monday, but rose against the Japanese yen at 3.6940/6983 from 3.7054/7109.
The local note contracted against the British pound to 5.2227/2286 from 5.2139/2219 and fell vis-a-vis the euro at 4.6668/6718 from 4.6544/6617. – Bernama