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Malaysia: Ringgit at three-month low
KUALA LUMPUR, Nov 23 — The ringgit ended at a near three-month low as a risk-off mode prevails amid weaker oil prices.
At 6pm, the local note weakened to 4.1970/2000, a level last seen in late-August versus the greenback from 4.1850/1880 at yesterday’s close.
Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the ringgit is already in the oversold zone.
He said weaker Brent crude amidst rising Covid-19 new cases and the subsequent measures on restrictive human mobility in Europe have resulted in the risk-off mode.
“The re-nomination of Jerome Powell as the US Federal Reserve chairman for the next four years also suggests policy continuity whereby it looks set to remove some of the monetary policy accommodation gradually.
“Expect the ringgit to stay weak in the near future at 4.19 to 4.20 per US dollar,” he told Bernama.
The United States, Japan and India were said to be planning to release crude reserves to keep prices within an ideal range, pressuring the market.
Both Brent crude and West Texas Intermediate hovered in the red at US$78.93 and US$75.70 per barrel respectively.
At home, the local note was traded mixed against a basket of major currencies.
The ringgit gained versus the British pound to 5.6147/6188 from yesterday’s close of 5.6196/6236 and increased vis-a-vis the Japanese yen to 3.6569/6598 from 3.6669/6698.
It, however, was unchanged against the Singapore dollar at 3.0734/0758 and slipped against the euro to 4.7258/7292 from 4.7207/7241 previously. — Bernama