Ringgit opens lower against USD amid concern for financial market outlook

KUALA LUMPUR: The ringgit opened lower against the US dollar today as investors remain concerned over the outlook for local and global financial markets, dealers said.

At 9am, the ringgit was lower at 4.1500/1530 to the greenback compared with 4.1470/1500 at yesterday’s close.

The dealer said the lower oil price has weighed on market sentiment towards the local note.

“The decline in oil prices would put more pressure on the ringgit’s performance in the near-term,” he said.

The international benchmark Brent crude futures declined 0.70 per cent to US$69.88 per barrel while the US West Texas Intermediate (WTI) crude oil futures was 0.77 per cent lower at US$61.64 per barrel.

The greenback continues to gather strength as investors bought on the prospect of a trade agreement between the U.S. and China.

However, the US-China trade talks stumbled after the White House threatened to hike tariffs on Chinese goods.

Meanwhile, the ringgit traded mixed against other major currencies.

The local note traded flat against the Singapore dollar at 3.0452/0485 from yesterday’s 3.0452/0479 but appreciated against the British pound to 5.3996/4055 from 5.4027/4075.

The local currency weakened vis-a-vis to the yen to 3.7748/7785 from 3.7700/7738 and declined against the euro to 4.6447/6501 from 4.6455/6501.

Ambank research expects the ringgit to trade between its support level of 4.1308 and 4.1407 while its resistance is pinned at 4.1522 and 4.1604.

In note, it said the ongoing trade dispute is expected to influence investors’ sentiment.

Looking at notable events during the day, the research house says the Philippines central bank is expected to cut its policy rate by 25bps, in line with Bank Negara’s move earlier this week.

It also highlighted speeches by US Federal Reserve governor Jerome Powell and Chicago Federal Reserve Bank president Charles Evans.

Source: TheStar