Ringgit weak due to political uncertainty, China’s Covid-19 case

RINGGIT remained weak against the US dollar throughout the day as uncertainty over a hung Parliament and China’s surge in Covid-19 cases left investors less interested in Monday’s trading session.

At 6pm, the local currency eased to 4.5770/5850 against the US dollar’s 4.5490/5565 at Thursday’s close.

The market is closed on Friday in conjunction with the 15th General Election.

The Managing Director of SPI Asset Management, Stephen Innes, said the weak ringgit was driven by a spontaneous reaction to political risk.

In addition, Asian risk appetite declined after news of curfews in several major cities in China.

The world’s second-largest economy reported the country’s first Covid-19 death in nearly six months, raising concerns about more stringent measures that may be introduced to contain infections.

“China’s curfew has blocked the narrative wave of ringgit recovery last week,” he told Bernama.

Innes said that although the ringgit reacted negatively to the hung Parliament, in the long term, the coalition government could provide more consultative policies and more checks and balances, which would have a positive impact on the market.

This week, the market will also closely monitor the September Leading Index and the October inflation rate which will be released on Friday.

Malaysian inflation dropped to 4.5 percent in September.

The ringgit, however, traded mostly higher than the major currencies.

It eased against the Singapore dollar to 3.3107/3169 from 3.3091/3150 at Thursday’s close, but rose against the euro to 4.6827/6909 from 4.7146/7224, jumped against the Japanese yen to 3.2278/2337 from 3.2581/2637 previously, and rose against the British pound to 5.4036/4131 from 5.4069/4159. – Named

Source link

Denial of responsibility! newzcentre.com is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected] . The content will be deleted within 24 hours.

Leave a Comment

Your email address will not be published. Required fields are marked *

Marvel releases the “Secret Invasion” trailer Couple believes they had won $360 in lottery, but it was actually $360,000 Inside Out 2 to be released by Disney Upcoming Star Wars movies and TV shows There will never be a recession in this business