KUALA LUMPUR: The ringgit retreated from its recent gains against the US dollar as investors’ risk appetite eased due to heightened concerns over the COVID-19 outbreak and declining global oil prices, dealers said.
The local note weakened to 4.1700/1750 against the greenback from 4.1575/1625 at yesterday’s close.
Global oil prices slumped ahead of possible deepest production cut by the Organisation of the Petroleum Exporting Countries (OPEC) in light of COVID-19.
The cut, however, very much depends on approval from oil producer nation Russia, a non-OPEC member.
It was reported that the deal would be applied on a pro-rata basis with core OPEC members set to slash one million barrels per day (bpd) while non-OPEC partners likely to reduce 500,000 bpd.
Oil prices have tumbled by 25% since the start of the year.
Meanwhile, another dealer said traders were on the sidelines despite a weak greenback sentiment in anticipation of another US Federal Reserve rate cut.
“The ringgit traded softer today after the FTSE Bursa Malaysia KLCI and local bond market opened weaker on the back of global risk aversion,” he added in a note.
Against other major currencies, the ringgit was also traded lower.
It fell against the Singapore dollar to 3.0222/0267 from yesterday’s close of 3.0018/0056 and decreased versus the Japanese yen to 3.9643/9701 from 3.8870/8927.
The local unit depreciated against the British pound to 5.4156/4237 from 5.3707/3788 and contracted vis-a-vis the euro to 4.7088/7161 from 4.6452/6512 previously. – March 6, 2020, Bernama
