KUALA LUMPUR – The ringgit extended last Friday’s weakness to end lower against the US dollar amidst weaker oil prices, an uncertain local political situation and weaker consumer buying power, said an analyst.
At 6pm, the local currency stood at 4.1630/1670 versus the greenback compared with 4.1500/1600 at Friday’s close.
The analyst said the waning global oil demand due to mobility restrictions following the unabated Covid-19 infections has resulted in a bleak outlook for oil companies, further aggravated by the United States elections campaign which is pushing towards green energy.
As at time of writing, benchmark Brent crude fell 2.51% to US$40.72 (RM221.31) per barrel.
Meanwhile, on the local front, the analyst said the uncertainty surrounding the local political situation has resulted in investors choosing to remain on the sidelines.
Prime Minister Tan Sri Muhyiddin Yassin today chaired another special meeting with his Cabinet following the Yang di-Pertuan Agong Al-Sultan Abdullah Riáyatuddin Al-Mustafa Billah’s decree yesterday that there was no necessity to declare a national state of emergency.
A similar meeting was held last Friday.
However, at press time, there has not been any details regarding the special Cabinet meeting today.
“In the meantime, the government’s move to extend the conditional movement control order (CMCO) for another two weeks until Nov 9, 2020 in Selangor, Kuala Lumpur and Putrajaya would cause business closures and subsequently a weak job market, leading to weaker consumer purchasing power,” she told Bernama.
Meanwhile, the ringgit was traded lower against other major currencies at the close today.
It fell against the Singapore dollar to 3.0604/0644 from Friday’s close of 3.0593/0678 and decreased against the British pound to 5.4319/4392 from 5.4286/4434.
The local currency also slipped versus the yen to 3.9689/9739 from 3.9664/9771 previously and weakened against the euro to 4.9157/9221 from 4.9153/9288 on Friday. – Bernama, October 26, 2020
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