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Thursday, October 1st, 2020

Ringgit lower against US dollar on falling crude oil prices

by April 18, 2017 General

Malaysian ringgit notes are seen among US dollar bills in this photo illustration taken in Singapore. — Reuters picMalaysian ringgit notes are seen among US dollar bills in this photo illustration taken in Singapore. — Reuters picKUALA LUMPUR, April 18 — The ringgit reversed yesterday’s gains to close lower against the US dollar today, mainly dragged down by the weak crude oil prices.

At 6pm, the local unit stood at 4.4090/4120 against the greenback compared with yesterday’s close of  4.4030/4060.

A dealer said crude oil prices fell today on expectation of a rising US shale production which was slated to grow by 124,000 barrels per day next month.

It was reported that global benchmark Brent crude oil futures dropped by 26 US cents to US$55.10 (RM243.02) per barrel, and the US West Texas Intermediate crude oil futures hit the lowest level since April 10 and traded 21 US cents lower at US$52.44 per barrel today.

“The decline in the global crude oil prices would hamper the country’s revenue from oil and gas sector, and therefore, it would diminish investors’ interest towards the local note,” he said.

Besides, the dealer said, news on US Treasury Secretary Steven Mnuchin’s support of US President Donald Trump’s strong US dollar view also resulted in a steady greenback against its peers.

“Mnuchin agreed that the stronger US dollar in the short term would hurt exports, but it would post a positive impact if the currency strengthens over the long term,” he was cited in a news report as saying.

Meanwhile, the ringgit was traded mixed against a basket of other major currencies.

It fell against the British pound to 5.5355/5410 from yesterday’s close of 5.5244/5300 and was traded lower against the euro at 4.6978/6028 from 4.6782/6818 yesterday.

However, the ringgit appreciated against the Singapore dollar to 3.1497/1530 from 3.1542/1575 yesterday and rose against the yen to 4.0539/0581 from 4.0648/0687 previously. — Bernama