Ringgit slips to 4.055 vs US dollar on MCO 2.0, state of emergency

KUALA LUMPUR: The ringgit slipped lower against the US dollar as investors remain uncertain over the reinstatement of the Movement Control Order (MCO 2.0) and state of emergency.

At 6 pm, the ringgit shed 70 basis points to close 4.0550/0600 from 4.0480/0530 against the greenback.

"It’s about the uncertainty surrounding the MCO and State of Emergency, ” Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid told Bernama.

However, he believes the vaccine roll-out in February should provide a confidence booster going forward.

"But this will take a while as herd immunity could only be reached perhaps towards the third or fourth quarter of 2021, at the earliest, ” he said.

Prime Minister Tan Sri Muhyiddin Yassin announced on Monday that a full-scale MCO restriction order would be reimplemented in major parts of the country, while today, Yang di-Pertuan Agong Al-Sultan Abdullah Ri'ayatuddin Al-Mustafa Billah Shah proclaimed a state of emergency until Aug 1 or when COVID-19 is under control.

Both announcements were aimed at containing the spread of the pandemic.

Regarding today’s trading, Mohd Afzanizam said the US dollar/ ringgit pair was volatile in the morning session with the local note bursting to RM4.0755, as markets were digesting the announcement of the state of emergency.

However, he said in the afternoon session, the currency pair was settling on a firmer footing.

"Perhaps, there is more clarity on how the economic sector would function during the state of emergency and clearly, there was no curfew, suggesting a more palatable human mobility based on what has been prescribed in yesterday’s announcement, ” he added.

Mohd Afzanizam believed the US dollar/ ringgit pair would remain in a range-bound trading in the immediate term.

At the close, the ringgit was also traded lower against other major currencies.

It fell against the Singapore dollar to 3.0535/0575 from 3.0436/0478 on Monday and depreciated against the yen to 3.8927/8978 from 3.8882/8934 yesterday.

Vis-a-vis the pound, the local currency declined to 5.5156/5236 from 5.4616/4687 at yesterday’s close and weakened against the euro at 4.9313/9378 from 4.9236/9309 previously. - Bernama

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 18
Cxense type: free
User access status: 3

ringgit , MCO 2.0 , state of emergency


Did you find this article insightful?


100% readers found this article insightful

Next In Business News

US corporate share buybacks are on the rise, lifting investor hopes
MITI: Govt can consider tightening Covid-19 SOPs to prevent outbreaks
Construction steel prices climb on higher iron ore cost, tight supply
KNM unit secures RM30mil supply job�
Dr Martens owners to raise US$1.78bil in London IPO
Hartalega quarterly net profit tops RM1bil for the first time as Covid-19 rages on�
IGB REIT says retail centres to bear the brunt of MCO 2.0
KLCI tumbles 20 points; over 1,100 stocks in red
Furniture maker Sern Kou sees 12.3% stake traded off-market
Bioalpha signs MoU with Zuellig Pharma for vaccine distribution

Stories You'll Enjoy