KUALA LUMPUR, June 30 — The ringgit ended marginally lower today as the US dollar records modest gains to reach a one-month high backed by economic rebound optimism.
As at 6pm, the local note was quoted at 4.2825/2875 against yesterday’s close of 4.2820/2880.
An analyst said this was after consumer spending data showed a strong rebound in May after the US lifted the stay-at-home orders.
“The spending pattern in the US has shown an increase, which gives a ray of hope that the global market is steadily on a rebound mode as countries manage to curb the Covid-19 spread,” she said.
Reports said spending on durable goods, led by purchases of cars and recreation vehicles, showed the sharpest increase in May at 29 per cent while spending on non-durable goods, like food and clothing, rose nearly eight per cent.
Mirroring the rise in consumer spending, US retail sales soared by a record-breaking 17.7 per cent in May.
On the local front, she said that as the US market showed signs of strength, the ringgit was expected to trade lower tomorrow in the range of between 4.2820 and 4.2835 to the dollar.
She noted that dark clouds still loomed over the global oil market as a second Covid wave in China could upend crude oil recovery, which would directly hurt the national coffers, which were already facing doubling deficit pressure.
As at 6.15 pm, the benchmark Brent crude was traded at US$41.14 per barrel.
Against other benchmark currencies, the ringgit was traded mostly higher.
The local note appreciated against the British pound to 5.2525/2603 from 5.2788/2880 yesterday, rose versus the Singapore dollar to 3.0646/0691 from 3.0746/0800, and climbed against the the euro to 4.7977/8050 from 4.8254/8339.
The ringgit, meanwhile, declined vis-a-vis against the Japanese yen to 3.9726/9784 from 3.9933/4.0000. — Bernama
