Ringgit slightly lower on downward oil trend

KUALA LUMPUR: The ringgit was slightly lower against the US dollar in the early trade on Friday, taking its cue from the projected downtrend in oil prices.

At 9.04 am, the local note eased to 4.2165/2190 versus the greenback compared to 4.2140/2190 at yesterday’s close.

Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said China has imposed mobility restrictions, including the cancellation of flights and train services to curb the spread of the Delta variant of the COVID-19 virus.

"As such, demand for jet fuel will likely be suppressed in the medium term, giving rise to concerns of an oversupply in the oil market, and hence, lower oil prices," he told Bernama.

Additionally, many major corporations in the United States have also delayed plans for a full return to the office until 2022, complicating the progress towards the reopening of the economy.

Meanwhile, the local note was traded mixed against a basket of major currencies.

It rose against the Japanese yen to 3.8384/8407 from 3.8456/8505 at Thursday’s close and advanced against the Singapore dollar to 3.1189/1213 from 3.1206/1247.

However, the ringgit eased vis-a-vis the euro to 4.9869/9898 from 4.9868/9928 yesterday and dropped against the British pound to 5.8694/8728 from 5.8655/8724 previously. - Bernama
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