KUALA LUMPUR – The ringgit opened marginally lower against the US dollar today as the greenback continues to strengthen following the official announcement of Joe Biden’s victory in the US presidential election.
At 9am, the ringgit opened at 4.0580/0620 compared with 4.0540/0580 at yesterday’s close.
An analyst said the slip is due to higher confidence in the US dollar, as the political dust there has settled and mass vaccination against Covid-19 has begun.
“With benchmark Brent crude having breached US$50 (RM203) per barrel, the ringgit has its upside momentum if the local economy continues to foster growth in coming weeks, as 2020 heads to its end.
“However, there are still strong concerns lingering in the local market, especially over rising Covid-19 cases, as well as political instability.”
Biden has officially clinched the presidency after the Electoral College yesterday confirmed his victory, capping a tumultuous period sparked by Donald Trump’s refusal to admit defeat.
The first coronavirus vaccines were also administered in US hospitals yesterday.
On the broader market, the ringgit traded mixed against other major currencies.
It fell against the Singapore dollar to 3.0438/0470 from 3.0413/0461, but rose against the British pound to 5.4130/4187 from 5.4352/4422 yesterday, amid ongoing Brexit talks.
The ringgit eased against the euro to 4.9329/9390 from 4.9280/9345, but added against the Japanese yen to 3.8982/9028 from 3.9071/9113. – Bernama, December 15, 2020
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