KUALA LUMPUR – The ringgit retreated from three consecutive days of gains to close lower against the US dollar today as the market anticipates the extension of the second movement control order (MCO) will have an impact on the short-term economic outlook.
At the close, the local note stood at 4.0415/0445 against the greenback from 4.0280/ 0320 yesterday.
Axi chief global market strategist Stephen Innes said reinstatement of mobility restrictions in Malaysia ahead of the Chinese New Year, as well as the resurgence of Covid-19 cases in China and the imposition of lockdown measures in the northern provinces in the republic would impact the global economic outlook.
“It is a double-whammy negative for the ringgit, as not only will China’s lockdown negatively impact regional growth, but it will have a downward pressure on oil prices, as China is the second largest oil consumer behind the US market,” he told Bernama.
At the time of writing, Brent crude slipped 1.85% to US$55.06 per barrel. – Bernama, January 22, 2021
