KUALA LUMPUR, 13 JULY: Despite the higher crude oil price, the ringgit began marginally lower against the US dollar, as global fears about the growing Covid-19 cases continue to drive some safe-haven movements into the currency. The local currency was trading at 4.1910/1935 against the greenback at 9 a.m., up from 4.1900/1930 at Monday’s close.
With several countries still fighting Covid-19, according to OANDA senior market analyst Edward Moya, US stocks moved higher into record territory as investors continue to favor the US growth story.
“As the Delta Covid-19 form spreads throughout many nations with low vaccination rates, cases are increasing, and it serves as a reminder to the rest of the globe about how difficult it is to eradicate this virus,” he told Bernama.
Investors remain bullish on stocks, according to Moya, but virtually little positioning is expected ahead of tomorrow’s important inflation data and the start of the US earnings season.
The ringgit is projected to stay rangebound between RM4.18 and RM4.19, according to Bank Islam Malaysia Bhd economist Adam Mohamed Rahim, as sentiment remains affected by rising Covid-19 infections in the country.
“However, the local note may have some support because the Organization of Petroleum Exporting Countries and its Allies (OPEC+) has yet to make progress in bridging the divisions between Saudi Arabia and the United Arab Emirates that prevented a deal to raise oil output last week, resulting in oil supply tightness and the prospect of higher oil prices,” he added.
Brent crude had risen 0.24 percent to US$75.34 per barrel at the time of writing.
The ringgit was generally trading down versus a basket of major currencies at the opening bell.
The local currency sank against the Singapore dollar, falling to 3.1012/1033 from 3.1003/1027 at Monday’s closing, and against the British pound, falling to 5.8226/8260 from 5.8082/8123. It also fell against the euro, falling to 4.9735/9764 from 4.9668/9704.
It did, however, gain ground versus the Japanese yen, rising to 3.7969/7991 from 3.8053/8080 the day before./n
