Ringgit opens lower against US dollar in tandem with falling crude

KUALA LUMPUR: The ringgit opened lower against the US dollar today in tandem with the decline in global crude oil prices.

At 9.02am, the local unit decreased marginally to 4.3550/3650 versus the greenback from 4.3530/3630 at yesterday’s close.

The international benchmark Brent Crude went below US$20 a barrel on concerns about ample storage and the global economy.

Brent Crude was trading 0.6% lower at US$19.87 as mounting concerns over scarce storage capacity especially in the US and global economic doldrums brought about by Covid-19.

Research firm Rakuten Trade Sdn Bhd said it finds the situation rather uneasy as the US remains the apex contributor to the global virus figures.

At the opening, the local unit however traded mostly higher against other major currencies.

It depreciated against the Singapore dollar to 3.0673/0759 from 3.0672/0754 at yesterday’s close but strengthened against the yen to 4.0591/0688 from 4.0610/0715.

Vis-a-vis the pound, the ringgit rose to 5.4120/4261 from 5.4121/4254 while against the euro, it improved to 4.7169/7290 from 4.7221/7347 yesterday.