KUALA LUMPUR: The ringgit ended lower today as the global oil output reduction deal failed to pacify investors amid mounting worries over the Covid-19 pandemic ahead of the release of a slew of economic data.
At 6 pm, the ringgit was quoted at 4.3200/3280 against the US dollar from 4.3050/3150 recorded last Friday.
AxiCorp global chief market strategist Stephen Innes said the ringgit is trading weaker ahead of the release of crucial economic data that could point to worsening economic conditions.
He said China’s first quarter gross domestic product (GDP) release will be closely monitored, along with crucial United States’ data on housing, retail sales and industrial production for March.
“For local concerns, the release of China’s 1Q GDP report on Friday is the big one. US retail sales is important as it is the first important data beyond US unemployment claims that will tell the markets how bad the US economy is.
“Locally, we need the Covid-19 curve to flatten for the ringgit to rally,” he added.
Kenanga Research said the decision by the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) to cut production by about 10 million barrels per day in May and June is deemed as insufficient to support crude oil price.
However, the deal may provide some support to oil prices from further downside, subsequently supporting ringgit stability.
“The short-term view has cast a weakening bias for the ringgit with a strong resistance at 4.345 and minor support at 4.292 for the US dollar-ringgit.
“Alternatively, the ringgit may be due for an upswing should the pair break through the 4.275 support level, provided crude oil price breaches and remains above US$40 per barrel,” it said in a note today.
Meanwhile, the ringgit also traded lower against a basket of major currencies.
It decreased vis-a-vis the Singapore dollar at 3.0513/0582 from 3.0461/0553 and declined against the Japanese yen to 4.0011/0096 from 3.9696/9799.
The local note was lower against the British pound at 5.4026/4139 from 5.3709/3851 and weakened against the euro at 4.7252/7344 from 4.7114/7236 recorded last Friday. – April 13, 2020, Bernama
