KUALA LUMPUR (May 11): The ringgit fell against the US dollar in early trade today ahead of the announcement of Malaysia’s economic growth for the first quarter of 2021 (1Q21) later in the day.
At 9.01am, the local currency had eased to 4.1100/1160 against the greenback from yesterday’s close at 4.1050/1100.
SPI Asset Management global managing partner Stephen Innes said the domestic unit opened on a slightly negative note amid inflationary pressures weighing on global risk sentiment, and with Malaysia entering another lockdown that is expected to negatively impact its economic growth.
The government yesterday extended the movement control order (MCO) currently enforced in several areas to cover the whole country from tomorrow to June 7 to contain the Covid-19 pandemic.
The country’s Covid-19 infections dropped slightly to 3,807 cases yesterday, with 17 deaths reported, bringing the total to 1,700 to date, a fatality rate of 0.39%.
Innes said the re-emergence of community cases forced tightening of social restrictions, which should have a short-term negative impact on the local market at least until the epidemic curve bends more favourably.
“But fortunately, soaring commodity prices and a robust export market should offer a lifeline to the ringgit and could limit the MCO-triggered sell-off,” he told Bernama.
At the opening, the ringgit was traded mostly higher against other major currencies.
Against the British pound, it fell to 5.8017/8106 from yesterday’s close at 5.7839/7922, but increased against the yen to 3.7731/7789 from 3.7740/7797.
Vis-à-vis the Singapore dollar, the ringgit rose to 3.0960/1017 from 3.0979/1033, and appreciated against the euro to 4.9838/9927 from 4.9925/0998. -BERNAMA