Ringgit ends lower against US dollar on declining oil price, worries over china's economy

KUALA LUMPUR: The ringgit reversed its gains to close lower against the US dollar today as oil prices continued to fall and as China expanded its COVID-19 lockdowns, further spurring concerns on how the world’s second largest economy will be affected by the constant disruptions.

At 6 pm, the local currency fell to 4.4820/4840 against the greenback from Tuesday’s close of 4.4745/4780.

The market was closed on Wednesday for the National Day celebration.

A dealer said China has expanded its COVID-19 lockdowns to include Chengdu, adding to downward pressure on oil prices.

“One of China’s biggest cities, which has 21 million people, will be facing the lockdown to contain the COVID-19 outbreak, which affects oil prices. The lockdown will take place for four days for city-wide mass testing starting today,” he told Bernama.

At the time of writing, the benchmark Brent crude oil price dropped 2.25 per cent to US$93.39 per barrel.

ActivTrades trader Anderson Alves said the ringgit will also take cues from the US non-farm payroll data tomorrow, with investors waiting to gauge how aggressive the US Federal Reserve monetary policy could be towards year-end.

Meanwhile, the ringgit was traded mostly higher against a basket of major currencies.

The local unit appreciated against the Singapore dollar to 3.2028/2047 from Tuesday’s close of 3.2073/2103, rose against the British pound to 5.1964/1987 from 5.2472/2514, and gained against the Japanese yen to 3.2205/2222 from 3.2335/2363 previously.

However, it depreciated against the euro to 4.4923/4943 from 4.4884/4919 on Tuesday. – Bernama

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