A customer counts her ringgit notes outside a money changer at the central business district in Singapore in this August 25, 2015 file photo. Malaysia's ringgit jumped more than 5 percent to a five-week high on October 7, 2015 on stop-loss dollar selling and higher local stocks. The ringgit, the worst performing Asian currency so far this year, surged as much as 5.2 percent to 4.1600 per dollar, its strongest since Sept 1. REUTERS/Edgar Su/Files

Malaysia: Ringgit lower ahead of 3Q GDP, declining oil prices

  • Nov 13, 2020

KUALA LUMPUR: The ringgit opened lower versus the US dollar Friday ahead of the third quarter gross domestic product (GDP) announcement later today and as a result of declining oil prices amid inventory build-up.

At 9.06 am, the local currency stood weaker at 4.13300/1370 against the greenback compared with Thursday’s close of 4.1280/1330.

Axi chief global market strategist Stephen Innes said traders are hoping for a more sobering decline in Q3 GDP at -7.0 per cent from the 17.1 per cent plunge in Q2.

“But of immediate concerns, the ringgit is getting little help on the energy front as oil prices once again are succumbing to, therefore, gnarly global COVID-19 outbreak.

“Its look like another day of struggles for the ringgit as we opened up a touch weaker at 4.13 level,” he told Bernama.

The oil market was under pressure after the Energy Information Administration reported oil stockpiles surprisingly grew 4.3 million barrels for the week ended Nov 6 after a stock draw of 8.0 million barrels in the previous week.

At home, the Bank Negara Malaysia (BNM) will release its Q3 data at 12 pm. Against other major currencies except the British pound, the ringgit was traded lower at the close today.

It slipped against the Singapore dollar to 3.0640/0681 from Thursday’s close of 3.0603/0647 and declined against the euro to 4.8802/8854 from 4.8739/8815.

The local note weakened vis-a-vis the yen to 3.9377/9419 from 3.9161/9220 yesterday but rose against the British pound to 5.4225/4282 from 5.4411/4498. – Bernama

Source: https://www.thestar.com.my/business/business-news/2020/11/13/ringgit-lower-ahead-of-3q-gdp-declining-oil-prices