Ringgit retreats on falling oil costs

KUALA LUMPUR: The ringgit opened decrease towards the dollar this morning because of falling crude oil costs amid US President Joe Biden’s administration’s resolution on a record-breaking launch of crude oil reserves to tame costs, mentioned an analyst.

At 9 am, the native forex was buying and selling at 4.2100/2140 towards the dollar from 4.2025/2055 at Thursday’s shut.

It was reported that the US authorities will withdraw a million barrels per day of oil from the Strategic Petroleum Reserve for a interval of six months in a bid to decrease gasoline costs and allay fears of shortages after the Russian invasion of Ukraine.

On the similar time, the Russian authorities additionally insisted that fee for fuel import can be in roubles or else it’s going to reduce the provides reduce, Financial institution Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid informed Benama.

On the time of writing, benchmark Brent crude oil slipped 4.88 per cent to US$107.91 per barrel.

Mohd Afzanizam mentioned the primary quarter of 2022 has been very risky and the army battle, which started on Feb 24, has added additional dimension to market uncertainties.

“It was unsettling for the market, resulting in stress for the protected demand to prevail,” Mohd Afzanizam mentioned, including that the US greenback index (DXY) rose 0.53 per cent to 98.312 factors as foreign exchange traders have been in search of refuge towards market uncertainties.

Within the meantime, the reopening of Malaysia’s worldwide borders in the present day would imply financial actions are prone to be extra vigorous going ahead and it ought to assist speed up home demand.

As such, the ringgit ought to stay lackluster in the present day and probably transfer in a slim vary, Mohd Afzanizam mentioned.

On the opening, the ringgit was traded largely blended towards a basket of main currencies.

The native unit depreciated towards the British pound to five.5303/5355 from 5.5158/5197 on Thursday and fell versus the Japanese yen to three.4477/4513 from 3.4472/4502 beforehand.

The ringgit rose towards the euro to 4.6592/6636 from 4.6698/6732 at yesterday’s shut, and remained unchanged towards Singapore greenback at 3.1033/1065 from 3.1033/1060 beforehand. – Bernama


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