Ringgit close higher as US Dollar retreats

28 Oct 2020 / 19:29 H.

KUALA LUMPUR: The ringgit closed higher against the US dollar today as the greenback retreated ahead of the United States (US) presidential elections on Nov 3, 2020, an analyst said.

At 6 pm, the local currency was traded at 4.1520/1570 versus the US dollar, compared with 4.1640/1680 at Tuesday’s close.

However, she said the gains in ringgit were capped by the lower oil prices, as oil refiners are cutting their output volumes, signifying lower demand.

“Oil is weakening as US democratic nominee Joe Biden is championing renewable energy in his US elections campaign, vowing that he would transition away from the oil industry,” she told Bernama.

On the same note, Axi chief global market strategist, Stephen Innes said oil would not go anywhere without a vaccine breakthrough.

“Even then, it is unlikely that international travel is ever going to recover (anytime soon) from the COVID-19 beat down,” he said.

As at the time of writing, the benchmark Brent crude eased 3.18 per cent to US$39.89 per barrel.

Meanwhile, on the local front, the analyst said the Budget 2021, to be unveiled on Nov 6, would also weigh on the local currency trends.

Yesterday, Finance Minister Datuk Seri Tengku Zafrul Aziz expressed confidence that the budget would not be politicised, following the Yang di-Pertuan Agong’s decree for all politicking to stop to ensure the country’s economic recovery and stability.

Meanwhile, the ringgit was traded mostly higher against other major currencies.

It improved against the Singapore dollar to 3.0469/0517 from Tuesday’s close of 3.0595/0636 and rose against the British pound to 5.3860/3929 from 5.4224/4288.

The ringgit ticked up against the euro to 4.8778/8841 from 4.9169/9220, but decreased versus the yen to 3.9835/9894 from 3.9801/9847 previously.

The market will be closed tomorrow in conjunction with Maulidul Rasul and will resume trading on Friday. — Bernama

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