Ringgit eases ahead of 1Q GDP result


KUALA LUMPUR: The ringgit fell against the US dollar in early trade today ahead of the announcement of Malaysia’s economic growth for the first quarter of 2021 later.

At 9.01am, the local currency eased to 4.1100/1160 against the greenback from Monday’s close of 4.1050/1100.

SPI Asset Management global managing partner Stephen Innes said the domestic unit opened on a slightly negative note amid inflationary pressures weighing on global risk sentiment, and Malaysia entering another lockdown that is expected to negatively impact the economic growth.

On Monday, the government extended the movement control order (MCO) currently enforced in several areas to cover the whole country from May 12 to June 7 to contain the COVID-19 pandemic.

The country’s COVID-19 infections dropped slightly to 3,807 cases on Monday, with 17 deaths reported, bringing the total to 1,700 to date, a fatality rate of 0.39 per cent.

Innes said the re-emergence of community cases forced tightening in social restrictions, which should have a short-term negative impact on the local markets, at least until the epidemic curve bends more favourably.

"But fortunately, soaring commodity prices and a robust export market should offer a lifeline to the ringgit and could limit the MCO triggered sell-off,” he told Bernama.

At the opening, the ringgit was traded mostly higher against other major currencies.

Against the British pound, it fell to 5.8017/8106 from Monday’s close of 5.7839/7922 but increased against the yen to 3.7731/7789 from 3.7740/7797.

Vis-à-vis the Singapore dollar, the ringgit rose to 3.0960/1017 from 3.0979/1033 and appreciated against the euro to 4.9838/9927 from 4.9925/0998. - Bernama

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Ringgit , US dollar , major currencies 

   

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