KUALA LUMPUR, July 17 ― The ringgit inched up a bit at today’s opening in line with the higher oil price as market players digest Opec’s decision to taper production cuts to give some room to manoeuvre in case the second wave of coronavirus forces a return of lockdowns, dealers said.
A dealer said the second wave if happens, would continue to shock the crude oil demand hence further dampen the global economy and currencies market.
As at 9am, the local unit eased to 4.2650/2710 against the greenback from 4.2680/2730 recorded at yesterday’s close.
The greenback weakened despite continued spending among Americans as doubts and uncertainty in the labour market remain.
Meanwhile, OANDA senior market analyst Edward Moya said the gradual reversal of reopening efforts across the US would likely continue to lead to a deteriorating outlook for the labour market and that should keep the pressure on the US government to deliver more fiscal stimulus before the end of the month.
Contrary to that, Bank Negara Malaysia is optimistic that the local economy would rebound strongly in the second half of 2020 as economic activities resume, while international agencies projected the country’s gross domestic product to grow between 6.3 per cent to 7.5 per cent next year.
Against a basket of currencies, the ringgit was traded mixed.
It fell against the Singapore dollar to 3.0637/0691 from 3.0626/0666 and depreciated to 5.3577/3657 from 5.3435/3519 versus the British pound.
However, vis-a-vis the yen, the local note rose to 3.9759/9827 from 3.9828/9882 and strengthened to 4.8544/8625 from 4.8570/8640. ― Bernama
