Ringgit Slightly Higher Against US Dollar In Early Trade

KUALA LUMPUR, Dec 20 (Bernama) -- The ringgit was slightly higher against the US dollar on Tuesday morning, but, trading at its lowest level since the financial crisis of 1998. At 9 am, the ringgit was traded at 4.4760/4790 to the greenback from Monday's 4.4765/4795. A dealer said the situation is due to an outflow of foreign investments as investors continue to sell down emerging-market assets. On Monday, Second Finance Minister Johari Abdul Ghani said the ringgit, which had weakened along with other emerging market currencies against the US dollar, has all the strength for a rebound. The ringgit and other emerging currencies declined against the US dollar following the US Federal Reserve's interest rate hike on Wednesday last week and due to the possibility of more rate hikes in 2017. Historically, the ringgit hit the 4.71-level against the US dollar in January 1998. FXTM Research Analyst Lukman Otunuga said sentiment remains firmly bullish towards the dollar as the year comes to an end with any weakness in prices seen as a technical correction. "Investors may direct their attention towards Thursday's US gross domestic product report, which if it exceeds expectations, could provide a solid platform for bulls to propel the dollar index back towards fresh 14-year highs," he said in a statement. The ringgit traded mixed against other major currencies. Vis-a-vis the Singapore dollar, the ringgit slipped to 3.0916/0943 from 3.0892/0927 on Monday, but eased against the yen to 3.8178/8207 from 3.8091/8127. Against the British pound, the local currency advanced to 5.5484/5526 from 5.5773/5819, while against the euro, it appreciated to 4.6564/6613 from 4.6762/6811. -- BERNAMA