KUALA LUMPUR, Oct 16 — The ringgit ended lower today as oil prices continued to dip following reports of the International Monetary Fund (IMF) lowering its world economic growth forecast for this year to the weakest pace since the financial crisis a decade ago.
At 6pm, the ringgit was quoted at 4.1935/1965 against the greenback compared with 4.1890/1920 at yesterday’s close.
An analyst said the ringgit’s movement was also influenced by ongoing global geopolitical tensions as well as rising concerns over the trade dispute between the United States and China.
“Despite the assurance given by the US and China that trade talks were going well, investors remained sceptical over the outcome, as there has been a precedent that trade talks often went south shortly after a perceived successful meeting,” he said.
The IMF, in a note today, predicted global growth this year to be three per cent. The fund estimated the US-China trade tensions would cumulatively reduce the level of global gross domestic product by 0.8 per cent by 2020.
As at 6pm, the benchmark Brent crude price stood at US$58.45 (RM245) per barrel and is expected to remain volatile in the coming months.
Against a basket of other currencies, the ringgit was traded mostly lower.
It weakened against the Singapore dollar to 3.0560/0585 from 3.0559/0585 at yesterday’s close and declined against the British pound to 5.3513/3568 from 5.2962/2020 yesterday.
The ringgit slightly strengthened vis-a-vis the yen to 3.8575/8613 from 3.8680/8714 but dipped against the euro to 4.6288/6338 from 4.6129/6175 at yesterday’s close. — Bernama