Ringgit’s good run dissipates as crude oil prices fall

Ringgit’s good run dissipates as crude oil prices fall

Worries over inflation and global growth as well as tighter financial conditions for the greenback also weigh down on the local note, analyst says.

An increase in interest rates in the US is likely to put pressure on the ringgit, according to an analyst.
KUALA LUMPUR:
The ringgit rally has finally fizzled out. Mixed sentiments and falling crude oil prices saw the currency open lower against the US dollar this morning.

At 9am, the local note fell to 4.4450/4.4495 versus the greenback from yesterday’s close of 4.4445/4.4460.

An analyst said that with the worries on inflation and global growth, as well as tighter financial conditions for the greenback, the local note is not expected to strengthen in the near term.

He said the increase in US interest rate would also put pressure on the ringgit.

Meanwhile, the ringgit traded higher against a basket of major currencies.

It rose against the Singapore dollar to 3.2441/3.2478 from 3.2456/3.2469 and gained versus the British pound to 5.4162/5.4217 from 5.4307/5.4326 previously.

The local currency improved vis-a-vis the Japanese yen to 3.3351/3.3387 from 3.3516/3.3529 yesterday and appreciated against the euro at 4.5846/4.5892 from 4.5934/4.5949 at yesterday’s closing.

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