Ringgit higher against US dollar in early trade

KUALA LUMPUR (June 24): The ringgit was slightly higher against the US dollar in the early trading session today as Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz’s remarks about the country’s economy helped lift market sentiment towards the local note.

However, gains were capped by lower global oil prices.

At 9.15am, the ringgit was quoted at 4.2700/2770 against the US dollar from 4.2710/2770 at the close yesterday.

Tengku Zafrul said Malaysia’s exposure to foreign currency fluctuations was extremely limited as 97% to 98% of the country’s debt comprised domestic borrowings.

Speaking when presenting the 10th Laksana (the Economic Stimulus Implementation and Coordination Unit Between National Agencies) report yesterday, he said the country’s debt level could hit the statutory limit of 55% of gross domestic product (GDP) at year end from the current 52%, following the implementation of measures to save lives, protect livelihoods and stimulate the economy.

However, he also highlighted that the government was very committed to ensuring fiscal discipline.

On the lower global oil prices, which capped the ringgit’s gains, a dealer said market players expected to see another build-up in crude oil inventories, thus putting pressure on prices with Brent crude oil trading 0.2% lower at US$40.29 (RM172.21) per barrel and West Texas Intermediate (WTI) crude oil 0.09% weaker at US$42.59 per barrel.

Meanwhile, the ringgit was traded lower against major benchmark currencies.

It fell against the Singapore dollar to 3.0744/0805 from 3.0671/0723 and decreased against the Japanese yen to 4.0064/0141 from 3.9875/9942 yesterday.

The local note declined against the British pound to 5.3503/3595 from 5.3165/3261 and was lower against the euro at 4.8319/8416 compared with 4.8203/8283 previously.

Source: TheEdgeMarkets