Ringgit retreats ahead of GDP announcement

  • Forex
  • Friday, 14 Aug 2020

KUALA LUMPUR: The ringgit retreated from the 4.18 level recorded yesterday ahead of the second quarter (Q2) gross domestic product (GDP) announcement later today and key trade talks between the United States and China meeting tomorrow.

A 9.01 am, the local note was traded lower at 4.1940/2010 from 4.1880/1930 at Thursday's close.

AxiCorp chief global market strategist Stephen Innes said the market may trading quiet and defensive ahead of the US-Sino trade talks and if the domestic GDP comes in at the worst end of the range, it could further accelerate demand for the US dollar.

"The problem is also the reliability of the data as normally we are dealing with the differences in GDP expected forecast points as in .2 or .3 but the individual forecast rages fall between -5.6 and -13.6 per cent according to recent media polls.

"That tells me economists are very uncertain what's going on," he told Bernama.

Bank Negara Malaysia will be releasing the Q2 data at 12pm.

On the positive side, he said the oil market performance remained well after OPEC said it will not increase production for a while, maybe not even until November, which should bode well for the prices and the local unit.

The Brent crude remained above US$45 per barrel amid the positive development.

The ringgit was traded mixed against a basket of major currencies.

It strengthened against the British pound to 5.4774/4869 from 5.4783/4865 on Thursday and against the euro to 4.9519/9614 from 4.9552/9628.

The local unit, however, declined versus the Singapore dollar to 3.0535/0597 from 3.0523/0570 and depreciated vis-a-vis the yen to 3.9207/9284 from 3.9184/9242 yesterday. - Bernama

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