Ringgit falls on lack of demand, Fitch's downgrade


KUALA LUMPUR: The ringgit opened easier against the US dollar today on lack of demand after gaining higher for the past three consecutive trading days amid firmer crude oil prices, said an analyst.

At 9 am, the ringgit was traded at 4.0830/0880 against the greenback from Friday's close of 4.0580/0620.

Axi chief global market strategist Stephen Innes said the weakening ringgit this morning was also attributed to Fitch Ratings’ decision to downgrade Malaysia’s sovereign debt rating to BBB+ (previous: A-) and change the rating outlook to ‘stable’.

"There is usually a knee-jerk reaction which will translate into a weaker currency when debt ratings agency makes a downgrade announcement, but it seldom have any legs to them, and I would expect the market to fade this move away and continue to buy ringgit.

"However, the ringgit is also on the back foot due to lower oil prices as California went back into lockdown. Nonetheless, I think oil prices will look through this as Asia's demand for oil is roofing,” he told Bernama.

Innes said it may be a good opportunity to buy the ringgit as the US dollar is expected to weaken following the passing of the European Central Bank’s (ECB) stimulus package and the uncertainty over Brexit at the EU Summit on Dec 10.

Meanwhile, the ringgit was traded lower against other major currencies.

It fell against the Singapore dollar to 3.0598/0645 from 3.0461/0498 at last Friday’s close, dropped vis-a-vis the British pound to 5.4814/4894 from 5.4698/4772.

The ringgit depreciated versus the euro to 4.9510/9583 from 4.9366/9430 and eased against the Japanese yen to 3.9222/9274 from 3.9023/9080 last Friday. - Bernama

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

ringgit , US dollar , Fitch , oil prices , Brexit , ECB , opening

   

Next In Business News

Gamuda posts higher Q3 earnings
Xin Hwa reprimanded, two directors fined RM150,000
EcoWorld Malaysia registers strong sales, higher earnings in Q2�
Ekuinas records strong investment returns for 2020
FBM KLCI closes at year's low
China says it will take necessary measures to safeguard Chinese firms' interests
Astro signs Netflix as new streaming partner
Boustead's three-pronged strategy to reinvent itself
Oil gains as draw in U.S. crude stocks reinforces outlook for robust demand
Singapore files 105 new charges against oil trader Hin Leong founder O.K. Lim

Stories You'll Enjoy


Vouchers