KUALA LUMPUR, June 4 — The ringgit turned lower today as profit-taking set in, as uncertainty over the Opec+ meeting and the country’s trade deficit reported in April triggering a reversal.
At the close, the ringgit was quoted at 4.2740/2810 against the greenback from 4.2590/2660 at the close yesterday.
Doubts over the ability of Opec and its allies to agree to extend production cuts pared gains in the oil prices.
AxiCorp global chief market strategist Stephen Innes said regional currency markets turned a bit nervous after President Donald Trump announced restrictions on Chinese airlines from flying into in the US in response to a similar ban by the Chinese government on American carriers from restarting services to China.
It was reported that the US administration will ban all Chinese passenger carriers from landing in the US effective June 16 but it could be enacted earlier if Trump decides to do so.
“In addition, the market was due for a correction ahead of Friday’s US Non-Farm Payrolls,” he told Bernama.
Locally, the International Trade and Industry Ministry today announced Malaysia’s trade deficit of RM3.5 billion in April 2020 after 269 consecutive months of surplus on account of higher contraction in exports compared to imports amid Covid-19 adverse impact.
Overall, total trade in April 2020 amounted to RM133.34 billion, a decrease of 16.4 per cent compared with April 2019, with lower trade recorded, particularly with Singapore, Thailand, India, the US, Japan, Vietnam, and Saudi Arabia.
The ringgit rally this week has been fuelled by economic recovery optimism and the reopening of more economies.
Meanwhile, the ringgit was traded mostly lower against a basket of benchmark currencies.
It declined against the Singapore dollar to 3.0483/0544 from 3.0480/0537, was lower compared to euro at 4.7865/7947 versus 4.7769/7856 and depreciated versus the Japanese yen at 3.9225/92933 from 3.9149/9224 yesterday.
The ringgit, however, was higher vis-a-vis the British pound at 5.3549/3645 from 5.3638/3743. — Bernama
