KUALA LUMPUR, Nov 20 ― The ringgit rebounded to open higher against the US dollar today on renewed demand despite declining global oil prices, said an analyst.
At 9.10am, the local currency stood at 4.0890/0950 against the greenback compared with yesterday’s close of 4.0960/0010.
Axi chief global market strategist Stephen Innes said the ringgit remains tethered to the Covid-19 yo-yo string.
He said for any countries with a sizable oil export quotient, their currency feels the ups and downs of the choppy oil market.
Brent crude oil stood at US$44.18 (RM180.62) per barrel, while WTI crude oil traded at US$41.65 per barrel.
“With another lockdown alert, especially in California, risk traders will likely need to price defensively into the weekend. So I would expect the local note to trade on a defensive axis as well,” he told Bernama.
Media reports say that California governor has issued a stay-at-home orders and a curfew for the state, effective November 21 to December 21.
Against other major currencies, the ringgit was traded mostly lower, except for Singapore dollar.
The local note was slightly higher against the Singapore dollar at 3.0411/0464 compared with 3.0417/0466 yesterday, but decreased against the British pound to 5.4216/4304 from 5.4092/4191.
It also declined versus the euro to 4.8557/8632 from 4.8452/8523 and vis-a-vis the yen, it fell to 3.9382/9442 from 3.9362/9414 yesterday. ― Bernama
Source: Malay Mail