Profit Taking Drags Ringgit Lower

KUALA LUMPUR, Feb 16 (Bernama) -- The ringgit closed lower against the US dollar Tuesday, contracting from Monday's uptrend as profit taking emerged to cap the day's gains, dealers said. At 5 pm, the local unit was traded at 4.1500/1550 per US dollar from 4.1250/1340 Monday. A dealer said the local unit moved sideways and retreated from its earlier gains, after opening higher at 4.1215/1275, given the positive sentiment brought about by crude oil prices which traded above US$30 per barrel. Prices surged nearly five per cent as Saudi Arabia and Russian energy ministers were scheduled to meet later in Doha to discuss the global oversupply issue. He said easing concerns over China's yuan also boosted demand for the ringgit, however, profit taking emerged to trim earlier gains. Other emerging currencies received a boost after China's Central Bank Chief Zhou Xiaochuan commented that there was no reason for the currency to fall further. Meanwhile, the ringgit was traded lower against a basket of major currencies. It fell against the Singapore dollar to 2.9590/9647 from 2.9492/9573 on Monday and weakened versus the yen to 3.6276/6329 from 3.6241/6330. The ringgit depreciated vis-a-vis the British pound to 6.0171/0252 from Monday's 5.9775/9914 and declined against the euro to 4.6356/6428 from 4.6167/6284 on Monday. -- BERNAMA