KUALA LUMPUR, Nov 26 — The ringgit retreated to open slightly lower against the US dollar today, but is expected to remain steady as the greenback continues its downside.
The US dollar weakened on ambiguous minutes from the latest Federal Reserve meeting, as traders digested the recent US vast economic numbers, dealers said.
At 9.00am, the local currency stood at 4.0850/0880 against the greenback compared with yesterday’s close of 4.0835/0890.
Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the ringgit is expected to continue its uptrend, supported by the firmer crude oil prices.
“The Brent crude is really looking up as the prices have marched higher to US$48 per barrel.
“The rise in crude oil prices will always be associated to Malaysia’s economy in respect to government’s revenue and the oil and gas industry. These will be the key factors to supporting the ringgit in the immediate term,” he told Bernama.
Mohd Afzanizam said talks of the discovery of the Covid-19 vaccine alongside the possibility of the Organisation of the Petroleum Exporting Countries (Opec) delaying its plan to increase their production next year have also fuelled hope that the global economic recovery will be sustainable next year.
However, he noted that profit-taking could seep in since the ringgit has appreciated quite considerably.
“All eyes will be on the Budget 2021 approval from members of Parliament. So, there could be a chance that the ringgit could experience some weaknesses in light of the uncertainty on the budget (vote),” he added.
Meanwhile, the ringgit was also traded lower against other major currencies at opening.
The local note was lower against the Singapore dollar at 3.0503/0537 compared with yesterday’s close of 3.0408/0454 and declined versus the euro to 4.8705/8758 from 4.8606/8684.
It fell vis-a-vis the yen to 3.9155/9191 from 3.9125/9185 yesterday and decreased against the British pound to 5.4694/4746 from 5.4478/4568. — Bernama
