Ringgit opens lower against US$ as oil prices slips

  • Forex
  • Friday, 18 Oct 2019

KUALA LUMPUR: The ringgit slipped at the opening Friday, amid the lower crude oil price despite a commitment by the Organisation of the Petroleum Exporting Countries and its allies to cut their oil production by 1.2 million barrel-per-day until March next year, a dealer said.

At 9am, the local note was at 4.1810/1840 versus the greenback from 4.1780/1830 recorded at Thursday’s closing.

The crude oil price currently trading at US$59.74 per barrel, down by 0.28 per cent.

The dealer, however, said the US dollar was also weakened after the British government and the European Union agreed on a long-awaited Brexit deal with investors’ interest shifted to the euro.

Against a basket of other currencies, the local note was traded mostly lower except with the yen, which rose to 3.8467/8505 from 3.8525/8572.

It depreciated against the Singapore dollar to 3.0628/0659 from 3.0576/0607, weakened against the British pound to 5.3772/3819 from 5.3728/3783 and slipped to 4.6522/6560 from 4.6411/6460 when compared with the euro. - Bernama

The Chinese yuan will continue to steer the direction of Asean currency as it remains the best barometer for US-China trade sentiment, says Stephen Innes, Asia Pacific market strategist for Axitrader.

He said in a note that the improving global risk environment, a slowing the global bond sell-off and signs of life in the local equity market are providing a fillip for the ringgit.

"Also, the more amenable tone being sounded by both the US and China, it does suggest at minimum trade talks are heading in the right direction, which could provide the Ringgit more headroom to rally," he added.

He noted that currencies in Asean remains relatively rangebound.

"But in the absence of negative China trade headlines, the market might be content to continue selling into USD rallies, which seems to be the typical flavour across most of G-10 also as we end the week," he said.

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