The ringgit ..close broadly lower against the US dollar, as dealers bought up the greenback, owing to a short squeeze in the market.
At 5 pm, the local unit was quoted at 3.3390/3420 against a greenback, from Friday’s close at 3.3290/3320, but what was more obvious was the significant drop in the ringgit, versus the Singapore dollar.
Dealers said that initially, interbank traders went short on the US dollar for the ringgit, but local corporate demand capped the local unit’s gains.
The ringgit then slipped to as low to 3.3390 against the greenback, on weaker-than-expected Industrial Production Data for December, that rose 4.8 per cent from a year earlier, which is below the market forecast of a 5.4 per cent growth.
Against the Singapore dollar, ringgit was traded at its lowest level in 24 years.
The ringgit was transacted at 2.6300 in intra-day trading today — a loss of nearly 80 per cent against the republic, since 1990.
source: The Edge