KUALA LUMPUR – The ringgit closed easier on the first trading day of November on concerns over the global economy as well as the 2021 Budget to be tabled on Friday.
At 6pm, the local currency stood at 4.1550/1600 versus the US dollar compared with 4.1530/1570 at last Friday’s close.
Kenanga Investment Bank said the local currency was expected to move on a downside bias this week, as the risk-off sentiment may persist on rising global Covid-19 figures.
Covid-19 cases have increased globally and countries such as the United Kingdom have entered into lockdowns to contain the spread to avoid an even more severe impact on the global economy.
“The market is also cautious about the local currency ahead of the tabling of Budget 2021 on Friday. However, the slide in the ringgit may be slightly tamed by a potential Joe Biden victory and an expected unchanged Overnight Policy Rate,” it said in research note.
Meanwhile, the ringgit was traded higher against other major currencies.
It improved against the Singapore dollar to 3.0413/0461 from last Friday's close of 3.0427/0468 and rose against the British pound to 5.3629/3701 from 5.3806/3866.
The ringgit strengthened against the euro to 4.8360/8435 from 4.8470/8529 and was higher vis-a-vis the yen at 3.9639/9698 from 3.9757/9814 previously. – Bernama, November 2, 2020
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