KUALA LUMPUR – The ringgit ended lower on Tuesday as uncertain outlook for oil prices and US stimulus measures lingered.
At 6pm, the local currency stood at 4.1480/1450 versus the greenback compared with 4.1415/1465 at Monday’s close.
Axi chief global market strategist Stephen Innes said traders were cautious after the Opec+ Joint Ministerial Monitoring Committee’s online meeting concluded without a firm decision on supply cuts.
“The oil prices could be one of those clouds that hang over the ringgit until Opec signals a definite extension to the current supply curbs.
“I’m not really sure why they haven't signalled that yet. Still, with Covid-19 in the air, oil prices will remain subdued,” he told Bernama, adding that the pre-election US stimulus package also remained in doubt.
The Brent and the West Texas Intermediate crude stood lower at US$42.41 (RM176) and US$40.69 per barrel, respectively.
“I think the next bullish impulse will be the Chinese Communist Party plenum, where I suspect President Xi Jinping will introduce steps to encourage more private consumption,” Innes said.
Meanwhile, the ringgit was traded mixed against other major currencies.
It weakened against the Singapore dollar to 3.0561/0624 from Monday’s close of 3.0517/0556 and increased against the British pound to 5.3754/3861 from 5.3819/3900.
The local currency rose versus the yen to 3.9291/9369 from 3.9308/9367 but slipped against the euro to 4.8963/9062 from 4.8679/8755. – Bernama, October 20, 2020
