KUALA LUMPUR, Oct 18 — The ringgit ended on a lower note today due to global uncertainties as well as declining oil prices.
At 6pm, the local note was quoted at 4.1850/1880 against the greenback compared with yesterday’s close of 4.1780/1830.
FXTM market analyst Han Tan said the new form of tariffs between the US and the European Union (EU) is a reminder that trade tensions are far from over.
“Starting today, new US tariffs will officially be imposed on US$7.5 billion worth of European goods, the latest reminder to investors that the world economy’s outlook remains tilted to the downside. Global growth is expected to wane further until existing tariffs are lifted,” he told Bernama.
Tan said the worrying trend is not only confined to developing economies, as evidenced by the deeper-than-expected slump in the September US industrial production data and Germany’s lowering of its 2020 growth forecast.
“Sentiment surrounding emerging-market assets is set to remain dampened as long as these trade tensions persist, with safe haven assets set to remain buoyant amid swirling concerns over the state of the worldwide economy,” he added.
As for oil prices, benchmark Brent Crude was recorded at US$59.87 per barrel, a decline of 0.07 per cent on the back of oil production slowdown in line with geopolitical uncertainties.
Meanwhile, the ringgit traded mostly lower against a basket of other major currencies.
It weakened against the Singapore dollar to 3.0644/0670 from 3.0610/0658 at yesterday’s close and improved against the British pound to 5.3999/4042 from 5.4005/4086.
The ringgit also dipped vis-a-vis the yen to 3.8518/8553 from 3.8415/8471 and fell against the euro to 4.6571/6621 from 4.6443/6507 at yesterday’s close. — Bernama