KUALA LUMPUR, Aug 12 – The ringgit closed 1.96 percent lower, breaching the psychological 4.0 level against the US dollar today following the Chinese central bank devalued the yuan for a second day. The local unit was quoted at 4.0375 / 0415 against the US dollar 3.9600 / 9630 on Tuesday at 5pm.
“Yuan declined again today to 6.3870 per dollar, compared to 6.3231 on Friday after China’s central bank devalued the yuan. Devaluation of the yuan, in addition to fluctuations in commodity prices has led to the sale of regional currencies, including the ringgit today,” said dealers.
Dollars that surpassed the 4.0 per dollar for the first time since the Asian financial crisis 17 years ago, also traded lower against other major currencies. It slipped against the Singapore dollar to 2.8619 / 8659 from 2.8302 / 8333 yesterday and fell against the yen to 3.2388 / 2431 from 3.1723 / 1752 on Tuesday. The ringgit depreciated against the pound sterling to 6.2876 / 2950 from 6.1701 / 1759 yesterday and declined against the euro to 4.4941 / 4998 from 4.3651 / 3700 previously.
