KUALA LUMPUR – The ringgit extended its downtrend to open lower against the US dollar in the early session today as investors continued to seek refuge in safe haven currencies on concerns over the global economic prospects, an economist said.
At 9am, the local note eased to 4.6485/6525 against the greenback from 4.6385/6425 at yesterday’s close.
Bank Muamalat Malaysia Bhd chief economist and social finance head Mohd Afzanizam Abdul Rashid said the local unit remained weak as major central banks were seen taking hawkish stands amidst a tight global liquidity environment.
Meanwhile, Bursa Malaysia opened lower today, taking its cue from Wall Street’s weaker performance overnight as strong housing data strengthened the prospect of higher interest rates, inadvertently taking the steam out of the weeks-long rally in the United States equities.
Investors remained cautious as they await US Federal Reserve chair Jerome Powell’s upcoming testimony before Congress later today for clues on the market direction, dealers said.
At 9.05am, the FTSE Bursa Malaysia KLCI (FBM KLCI) shed 3.39 points to 1,384.94 from 1,388.33 at yesterday’s close.
The key index opened 2.60 points lower at 1,385.73.
On the broader market, losers led gainers 172 to 88, while 204 counters were unchanged, 1,831 untraded and 18 others suspended.
Turnover stood at 141.83 million units worth RM45.50 million. – Bernama, June 21, 2023
