KUALA LUMPUR, Sept 22 — The ringgit continued to close lower against the US dollar today despite a rebound in oil prices, due to the stronger greenback .
As at 6pm, the local note was quoted at 4.1320/1370 compared with yesterday’s close of 4.1200/1250.
AxiCorp chief global market strategist Stephen Innes said the local currency’s pull back continues, primarily driven by a stronger US dollar across the board.
“Crude oil markets are struggling due to fresh Covid-19 concerns in Europe, and some minor concerns around the FTSE Russell’s potential decision to exclude Malaysian Government Securities (MGS) is likely affecting bond market sentiment and negatively impacting the ringgit,” he told Bernama.
Innes said in line with broader markets, oil prices were hammered lower overnight as growth assets buckled amid lockdown fears.
“There continues to be concerns around the effects on demand due to the resurgence in coronavirus cases globally, as countries have to counterbalance economic and health issues in getting back to work.
“The second half of 2020 was always going to reflect this oil price see-saw,” he added.
At 6.15pm, Brent crude oil price rose 1.28 per cent to US$41.97 per barrel.
Against other major currencies, the ringgit was traded higher.
It appreciated against the Singapore dollar to 3.0293/0337 from 3.0305/0353 yesterday and rose against the British pound to 5.2836/2908 from 5.2942/3010.
The local currency improved against the euro to 4.8497/8560 from 4.8546/8617 previously and advanced versus the yen to 3.9514/9570 from 3.9551/9610. — Bernama