KUALA LUMPUR (April 28): The ringgit opened slightly lower against the US dollar on renewed demand for the greenback as steady US Treasury yields and increased risk aversion following surging COVID-19 cases, mainly in Asia, lent support to the US dollar.
At 9am, the local currency was trading at 4.0990/1030 against the greenback from Tuesday’s close of 4.0960/0990.
An analyst said the decrease, however, was held up by the firmer oil prices as the Organisation of the Petroleum Exporting Countries Plus (OPEC+) decided to keep output cuts unchanged.
Meanwhile, Edward Moya, OANDA senior market analyst for The Americas, in a note, said despite the crude demand hit from India and Japan, the outlook has dramatically improved across Europe and provided an opportunity to stick to the three-month gradual increase plan made four weeks ago.
Oil demand is expected to continue to fall in India and Japan as the number of COVID-19 cases continue to surge.
At the time of writing, the benchmark Brent crude oil price was steadily trading at US$66.35 per barrel.
Meanwhile, the ringgit was traded mixed against other major currencies.
The local note marginally increased against the Singapore dollar to 3.0880/0912 from Tuesday’s 3.0883/0908 and was up versus the Japanese yen to 3.7633/7680 from 3.7824/7856.
It, however, marginally depreciated against the euro to 4.9504/9568 from 4.9410/9463 and eased against the British pound to 5.6927/6987 from 5.6865/6923.
