KUALA LUMPUR, Jan 22 — The ringgit retreated from three consecutive days of gains to close lower against the US dollar today as the market anticipates the extension of the second movement control order (MCO) will have an impact on the short-term economic outlook.
At the close, the local note stood at 4.0415/0445 against the greenback from 4.0280/ 0320 yesterday.
Axi chief global market strategist Stephen Innes said the reinstatement of mobility restrictions in Malaysia ahead of the Chinese New Year, as well as the resurgence of Covid-19 cases in China and imposition of lockdown measures in the northern provinces in the republic would impact on the global economic outlook.
“It is a double whammy (negative) for the ringgit, as not only will China’s lockdown negatively impact regional growth, but it will have a downward pressure on oil prices as China is the second largest oil consumer behind the US market,” he told Bernama.
At the time of writing, Brent crude slipped 1.85 per cent to US$55.06 (RM223) per barrel.
The ringgit closed lower against other major currencies, except against the British pound.
It retreated against the Singapore dollar to 3.0451/0485 from 3.0441/0481 at yesterday’s close, weakened against the euro to 4.9197/9246 from 4.8904/8965 yesterday, and fell against the yen to 3.8984/8021 from 3.8944/8987 previously.
The local note rose vis-a-vis the pound to 5.5231/5288 from 5.5312/5380 at yesterday’s close. — Bernama
