KUALA LUMPUR: The ringgit finished lower against the US dollar today, tracking the weaker performance of crude oil prices, an analyst said.
At the close today, the ringgit was quoted at 4.2720/2800 versus the greenback from 4.2640/2700 recorded at Friday’s close.
AxiCorp global chief market strategist Stephen Innes said the ringgit was trading fairly neutral on Tuesday as oil prices continued to zig-zag during most of the session as traders try to take positions in line for this week’s US oil inventory data reports.
The crude oil prices are expected to see volatile trading this week.
However, the Malaysian government’s stimulus initiative called the National Economic Recovery Plan or Penjana worth RM35 billion would likely weather the uncertainty in the market, including the currency market, he noted.
Brent crude oil price today slipped 1.86% to US$40.04 per barrel. Despite the slightly lower price, the benchmark oil is showing signs of topping out for now after OPEC+’s agreement to extend by one month the existing first-stage agreement for output cuts.
Previously, OPEC+ agreed to cut output by a record 9.7 million barrels per day in May and June to lift prices.
Meanwhile, the ringgit was traded mostly lower against a basket of benchmark currencies, except against the euro, where it rose to 4.8124/8227 from 4.8328/8409 last Friday.
It declined against the Singapore dollar to 3.0661/0723 from 3.0604/0658, was lower versus the British pound at 5.4007/4121 from 5.3859/3947 and fell vis-a-vis the yen to 3.9589/9674 from 3.9019/9085 previously.
The market was closed on Monday in conjunction with the official birdthday of the Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah. - Bernama
source https://www.thesundaily.my/business/ringgit-ends-lower-versus-greenback-as-oil-price-dips-DE2547252
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