Ringgit slightly lower as commodity currencies lag


KUALA LUMPUR: The ringgit opened slightly lower against the US dollar today as the greenback strengthened against commodity currencies, underpinned by recovery optimism.

The local currency was also trading in a cautious mode amidst selling pressure ahead of the weekend, as well as the release of Malaysia’s second quarter (Q2) Gross Domestic Product (GDP) report, a dealer said.

At 9.00 am, the local note stood at 4.2350/2370 versus the greenback compared with 4.2300/2330 at Thursday's close.

Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said to Bernama that the ringgit is expected to face headwinds today as the rising COVID-19 cases in China clouded crude oil demand prospects.

"The United States (US) President Joe Biden’s move to urge the Organisation of Petroleum Exporting Countries and its allies (OPEC+) to boost production quickly in an effort to tame climbing gasoline prices would continue to affect market sentiments and crude oil prices, amidst an already oversupplied market,” he said.

He noted that Brent crude oil’s price has a causality effect on the ringgit’s movement.

Nonetheless, Adam said the ringgit may get some support later today if Malaysia’s Q2 2021 GDP data -- scheduled to be released this afternoon -- surpasses expectations.

Meanwhile, the local note was also traded mostly lower against a basket of major currencies, except the British pound.

The ringgit fell against the Japanese yen to 3.8354/8375 from 3.8301/8332 at Thursday’s close and depreciated vis-a-vis the euro to 4.9702/9725 from 4.9660/9695 previously.

It slipped against the Singapore dollar to 3.1186/1203 from 3.1174/1198, but rose against the British pound at 5.8485/8513 from 5.8640/8682 yesterday. - 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

   

Next In Business News

Cagamas concludes pricing of RM4bil worth of bonds, sukuk
Malaysia's November manufacturing PMI rises to 52.3
Asian factories shake off supply headaches but Omicron presents new risks
Dialog's share price rises, backed by resilient operations
Oil rises 1% ahead of Opec meeting under Omicron cloud
Ringgit extends gains as greenback falls on possible Fed tapering
KPJ Healthcare appoints new COO
Bursa falls as Fed chair comments spark selling in equities
CTOS IDGuard prevents over RM79 million in fraud
Trading ideas: Axiata, Tenaga Nasional, Berjaya Land, RHB Bank, FGV

Others Also Read


Vouchers