KUALA LUMPUR (June 29): The ringgit opened slightly lower against the US dollar this morning as oil prices declined amid concerns that the spread of the Covid-19 Delta variant would ease demand for fuel, an analyst said.
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At 9.03am, the local note had declined to 4.1470/1500 versus the greenback from 4.1445/1495 at yesterday’s close.
At the time of writing today, benchmark Brent crude oil had slipped 0.32% to US$74.44 (about RM309.01) per barrel.
Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said oil benchmark Brent crude dipped by 1.9% yesterday over concerns that the spread of a Covid-19 variant in Europe and Austria will lead to less travel, putting pressure on oil prices.
He said oil traders also remained on the sidelines ahead of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) meeting on crude production levels this week.
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“Nevertheless, the National People’s Well-Being and Economic Recovery Package (PEMULIH) worth RM150 billion announced by the government should cushion further losses of the ringgit,” he told Bernama.
Yesterday, Prime Minister Tan Sri Muhyiddin Yassin announced the PEMULIH package, aimed at providing comprehensive assistance to the people, focusing on continuing the people’s welfare agenda, supporting businesses and increasing vaccination.
Meanwhile, at the opening, the ringgit was traded mixed against a basket of major currencies.
Against the British pound, it rose to 5.7490/7531 from 5.7700/7769 at yesterday’s close and strengthened vis-a-vis the euro to 4.9432/9468 from 4.9481/9541 previously.
However, the local unit declined slightly against the the Singapore dollar to 3.0867/0892 from 3.0865/0906 yesterday and dropped against the Japanese yen to 3.7523/7550 from 3.7439/7484 previously.- BERNAMA