KUALA LUMPUR, July 10 — The ringgit ended lower against the US dollar on lack of buying interest amidst a surge in Covid-19 cases in the United States (US), said an analyst.
As at 6pm, the local unit fell slightly to 4.2650/2690 against the greenback from Thursday’s close of 4.2600/2650.
AxiCorp chief global market strategist Stephen Innes said although there was a bit of a headline shocker from the rise in Covid-19 cases in the US, the ringgit had come off from its intraday worst levels, showing some resilience in the face of adversity.
“I think of a few things in play. Although oil prices are lower, it is unlikely to go below US$40 per barrel for Brent crude,” he told Bernama.
Officials across the US reported more than 59,000 cases on Thursday, setting a single-day record for the sixth time in 10 days, driven largely by states in the South and the West that were among the first to ease restrictions established during the virus’s initial wave in the spring.
In a note earlier today, Innes said there were two reasons that oil bulls are always a jumble of nerves, namely the possible impact on oil market due to rising US production and the recent rebound in Covid-19 infection numbers.
“But when it comes to oil prices, number two is the most significant fear factor,” he added.
Meanwhile, the ringgit was traded mixed against other benchmark currencies.
The domestic unit rose against the British pound to 5.3773/3845 from Thursday’s 5.3906/3982 and strengthened against the euro to 4.8152/8210 from 4.8262/8335 yesterday.
The ringgit fell against the Singapore dollar to 3.0648/0684 from 3.0595/0642 and depreciated against the yen to 3.9931/9979 from 3.9702/9752 previously. — Bernama
