Ringgit retreats against US dollar in early trade

KUALA LUMPUR: The ringgit retreated against the US dollar in the early session today after four days of gains, weighed by the ongoing uncertainty in the global sentiment, a dealer said.

At 9am today, the ringgit was quoted at 4.2775/2875 against the US dollar compared with 4.2430/2500 recorded at Thursday’s close.

A dealer said after putting on a strong performance earlier in the week, the ringgit looks particularly susceptible to lower oil prices and struggling risk sentiment.

Key oil benchmarks, Brent crude slipped 3.50% to US$37.20 per barrel today, while WTI crude fell 4.43% to US$34.73 per barrel as concerns over the rising number of Covid-19 cases in some US states have dampened crude demand.

The greenback jumped 0.81% to 96.733 boosted by improvements in several key indicators including initial jobless claims for the week ending June 6 which showed the jobless claims slowed down to 1.5 million from 1.9 million in the previous week.

At the opening, the ringgit was traded mostly higher against a basket of benchmark currencies.

However, the local note fell against the Singapore dollar to 3.0659/0741 from 3.0613/0675 on Thursday but appreciated versus the British pound to 5.3670/3812 from 5.3844/3954 yesterday.

The local currency strengthened against the Japanese yen to 3.0104/0205 from 3.9665/9742 and rose vis-a-vis the Euro to 4.8242/8372 from 4.8294/8382 previously.