Money
Ringgit ends lower against US dollar on declining oil price, worries over China’s economy
The ringgit reversed its gains to close lower against the US dollar today as oil prices continued to fall and as China expanded its Covid-19 lockdowns, further spurring concerns on how the world’s second largest economy will be affected by the constant disruptions. ― Picture by Sayuti Zainudin

KUALA LUMPUR, Sept 1 — The ringgit reversed its gains to close lower against the US dollar today as oil prices continued to fall and as China expanded its Covid-19 lockdowns, further spurring concerns on how the world’s second largest economy will be affected by the constant disruptions.

At 6pm, the local currency fell to 4.4820/4840 against the greenback from Tuesday’s close of 4.4745/4780.

Advertising
Advertising

The market was closed yesterday for the National Day celebration.

A dealer said China has expanded its Covid-19 lockdowns to include Chengdu, adding to downward pressure on oil prices.

"One of China’s biggest cities, which has 21 million people, will be facing the lockdown to contain the Covid-19 outbreak, which affects oil prices. The lockdown will take place for four days for city-wide mass testing starting today,” he told Bernama.

At the time of writing, the benchmark Brent crude oil price dropped 2.25 per cent to US$93.39 per barrel.

ActivTrades trader Anderson Alves said the ringgit will also take cues from the US non-farm payroll data tomorrow, with investors waiting to gauge how aggressive the US Federal Reserve monetary policy could be towards year-end.

Meanwhile, the ringgit was traded mostly higher against a basket of major currencies.

The local unit appreciated against the Singapore dollar to 3.2028/2047 from Tuesday’s close of 3.2073/2103, rose against the British pound to 5.1964/1987 from 5.2472/2514, and gained against the Japanese yen to 3.2205/2222 from 3.2335/2363 previously.

However, it depreciated against the euro to 4.4923/4943 from 4.4884/4919 on Tuesday. — Bernama

Related Articles

 

You May Also Like