Ringgit opens easier against US dollar as oil price declines

Ringgit opens easier against US dollar as oil price declines

At 9.02am, the local currency fell to 4.4830/4860 against the greenback from Tuesday’s close of 4.4745/4780. ― Reuters pic

Thursday, 01 Sep 2022 10:06 AM MYT

KUALA LUMPUR, Sept 1 ― The ringgit opened lower against the US dollar today, weighed down by the declining oil price, while the greenback continued to strengthen amid general pessimism about the global economy, an analyst said.

At 9.02am, the local currency fell to 4.4830/4860 against the greenback from Tuesday’s close of 4.4745/4780.

The market was closed yesterday for the National Day celebration.

OANDA senior market analyst Edward Moya said crude oil prices are falling as energy traders anticipate a brutal period for global growth, partly because China’s factory activities remain depressed.

“Crude prices have been trending lower as the oil market does not look that tight anymore, but this last wave of weakness will likely be followed by a reduction in the Organisation of the Petroleum Exporting Countries output,” he told Bernama.

At press time, the benchmark Brent crude oil price dropped 2.84 per cent to US$96.49 per barrel. In the meantime, Moya noted that investors are also looking forward to the United States Non-Farm Payroll data due on Friday.

“A slower pace of hiring still gives the Federal Reserve the green light for more aggressive rate hikes over the next Federal Open Market Committee meetings,” he added.

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

The local unit appreciated against the Singapore dollar to 3.2033/2059 from Tuesday’s close of 3.2073/2103, rose against the British pound to 5.1931/1966 from 5.2472/2514 and gained against the Japanese yen to 3.2150/2174 from 3.2335/2363 previously.

However, it depreciated against the euro to 4.4942/4972 from 4.4884/4919 on Tuesday. ― Bernama