KUALA LUMPUR: The ringgit remains under pressure as crude oil price plunged to below US$30 per barrel, while Covid-19 continues to throttle global demand for oil.
As at 6pm, the ringgit was quoted at 4.3737/3844 compared with 4.3480/3530 yesterday, while the benchmark Brent Crude was recorded at US$29.76 per barrel.
An analyst said the decline in oil prices will restrain the government’s financial capabilities as oil is one of the country’s main sources of income.
“The government had drafted the 2020 budget with the oil priced at US$62 per barrel. However, the oil price has plunged by 52%, a benchmark which was last seen in 2014-2016,” she noted.
She added that drastic measures must be taken to ensure that the ringgit is supported in the near term to mitigate further decline in the local note as well as the local bourse.
The decline in oil prices has not only affected the Malaysian ringgit but also other emerging currencies such as those of Mexico, Russia and Iran.
Meanwhile, the local note was traded higher against a basket of other currencies.
It was slightly higher against the Singapore dollar at 3.0446/0664 from 3.0482/0528 at Tuesday’s close, rose against British pound at 5.2514/2570 from 5.2911/1985 and increased vis-a-vis the euro to 4.7938/8081 from 4.8228/8297 previously.
It also rose against the Japanese Yen to 4.0792/0850 from 4.0792/0850 yesterday. – March 18, 2020, Bernama
— BERNAMA
