KUALA LUMPUR, Oct 16 — The ringgit extended its downtrend to end lower against the US dollar on Monday as the greenback continued to strengthen amid geopolitical worries in the Middle East, an economist said.
At 6 pm, the local currency fell to 4.7340/7380 against the greenback from Friday’s close of 4.7260/7305.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the ongoing tension in the Middle East continued to weigh on market sentiments, providing support to the greenback.
In addition, he said crude oil prices fluctuated but remained above US$90 per barrel as the situation in Gaza is expected to get more intense. “This has led to concerns over crude oil prices in the near term and how major central banks would react to such potential inflationary pressures.”
At the time of writing, the benchmark Brent crude oil price eased 0.09 per cent to US$90.81 per barrel.
The ringgit also traded mostly lower versus a basket of major currencies.
It appreciated vis-à-vis the British pound to 5.7494/7543 from 5.7615/7670 at Friday’s close, but went down against the euro to 4.9858/9901 from 4.9760/9807 and eased against the yen to 3.1668/1697 from 3.1582/1615 last Friday.
Similarly, the local note was traded mostly weaker against other Asean currencies.
It fell against the Singapore dollar to 3.4560/4592 from 3.4522/4559 at Friday’s close and declined against the Thai baht to 13.0392/0549 from 12.9810/9995 previously.
The local unit eased against the Philippine peso to 8.33/8.34 versus 8.32/8.33 last Friday but inched up against the Indonesian rupiah to 301.0/301.5 from 301.3/301.7 previously.
— Bernama
