KUALA LUMPUR (Feb 24): The ringgit extended its downtrend to open lower at 4.22 against the US dollar today, due to uncertainties arising from local political wranglings.

At 11.20am, the local note was trading at a year-to-date low of 4.22 in contrast to last Friday’s close of 4.19.

The ringgit was also traded lower against other major currencies.

Market analyst at FXTM, Han Tan, told theedgemarkets.com today that other than recent political developments, the Covid-19 impact also weighed on the economy, adding to the downward pressures on the ringgit.

He said investors will be interpreting the political manoeuvring through the lens of policy continuity in determining whether the ringgit should remain on the weaker side against the US dollar.

“Should the uncertainties continue unabated, USDMYR may carve out a path towards the 4.24-4.25 region, until there is more clarity with regards to Malaysia’s policy and economic outlook,” he said.

Meanwhile, MIDF Amanah Investment Bank Bhd Research said in a note today that the possibility of the exclusion of Malaysian bonds by FTSE Russell from its World Government Bond Index is another factor driving down ringgit today.

“We expect ringgit to average at 4.18 and year-end at 4.20 in 2020,” said the research house.