KUALA LUMPUR (July 7): The ringgit slid by 70 basis points against the US dollar today despite the firmer crude oil prices, as cautious sentiment prevailed after the local Covid-19 daily tally rose above 7,000 yesterday.
At 9am, the local note was traded at 4.1600/1620 against the greenback from 4.1530/1560 at Tuesday’s close.
ActivTrades trader Dyogenes Rodrigues Diniz said with the number of new cases rising once again, it is possible that the local authorities would impose more movement restrictions, which could cause the ringgit to resume its depreciation against the US dollar.
Malaysia recorded a total of 7,654 Covid-19 cases yesterday — a sharp increase from Monday’s 6,387 cases, bringing the cumulative number of cases in the country to 792,693.
“Later this week, investors will keep an eye on the Federal Open Market Committee (FOMC) Meeting minutes for more clues on the United States’ monetary policy developments and moves in interest rates,” he told Bernama.
Meanwhile, Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said the local vaccination progress is encouraging as the nation saw a new vaccination record of 313,761 doses on July 5, which could boost sentiments among traders.
At the opening bell, the ringgit was traded mixed against a basket of major currencies.
The local note rose against the Singapore dollar to 3.0867/0885 from 3.0877/0902 at Tuesday’s close and advanced versus the British pound to 5.7400/7427 from 5.7502/7544 yesterday.
However, it depreciated vis-a-vis the Japanese yen to 3.7674/7692 from 3.7482/7512 and weakened slightly against the euro to 4.9175/9199 from 4.9172/9207 previously.- BERNAMA