Ringgit opens lower due to pause in oil’s rally

KUALA LUMPUR: The ringgit opened lower against the US dollar today on the back of lower oil prices.

At 9.10am, the ringgit was quoted at 4.2850/2900 compared with yesterday’s close of 4.2840/2880.

AxiCorp Global chief market strategist Stephen Innes said sentiment turned sour due to risks in the Hong Kong security law situation after the US, UK and Japan voiced their disapproval.

“I think the lingering effect of the agency debt warning is hanging over the ringgit like a dark cloud this week,” he told Bernama.

“Currency risk will be muted today as the major risk event of the week looms ahead of the US Non-Farm Payrolls release.”

The crude Brent was lower at US$41.90 per barrel, while the West Texas Intermediate declined to US$39.64 per barrel.

Meanwhile, the ringgit was traded lower against other benchmark currencies.

The local note declined versus the Singapore dollar to 3.0743/0781 from 3.0718/0756 and slipped versus the British pound to 5.3438/3513 from 5.3100/3167 yesterday.

It also dipped compared to the euro to 4.8211/8271 from 4.8007/8068 and reduced vis-a-vis the Japanese yen to 3.9868/9922 from 3.9833/9881.