The ringgit opened slightly lower against the US dollar at the start of the week as global investors remain cautious and opt to reduce their holdings in emerging markets.
At 10:26am, the ringgit opened at 4.0620, down 0.25% against the US dollar since opening early Monday in the Asian session.
IPPFA Sdn Bhd Investment Strategy Director Mohd Sedek Jantan explained that periods of risk-off typically see capital flows shift to the US dollar as a safe haven, putting regional currencies, including the ringgit, under temporary pressure.
He also noted that the recent US military attack on Venezuela has added to the risk-off tone, although the situation has not changed the fundamentals of the Malaysian economy.
The situation has also increased geopolitical uncertainty which tends to increase demand for US assets and strengthen the dollar in the short term.
Meanwhile, the minutes of the US Federal Open Market Committee (FOMC) meeting in December also supported the US dollar's rise.
At the opening session, the ringgit traded lower against major currencies.
It declined against the pound to 5.4527/4662 from 5.4509/4569, depreciated against the euro to 4.7499/7616 from 4.7488/7540 and fell against the Japanese yen to 2.5845/5911 from 2.5817/5848.
The ringgit was traded mixed against ASEAN currencies.
It declined against the Philippine peso to 6.89/6.91 from 6.88/6.89 and weakened against the Singapore dollar to 3.1506/1586 from 3.1502/1540.
However, it rose against the Thai baht to 12.8662/9073 from 12.8996/9201 and was unchanged against the Indonesian rupiah at 242.6 from 242.2/242.6 previously.
