Ringgit ends lower against US dollar on fall in oil price, China interest rate cut

Ringgit ends lower against US dollar on fall in oil price, China interest rate cut

The ringgit ended weaker today against the US dollar, in line with regional currencies which were dragged down by China’s move to cut a key lending rate, said an analyst. ― Picture by Hari Anggara

Monday, 22 Aug 2022 7:37 PM MYT

KUALA LUMPUR, Aug 22 — The ringgit ended weaker today against the US dollar, in line with regional currencies which were dragged down by China’s move to cut a key lending rate, said an analyst.

At 6pm, the local currency settled at 4.4855/4870 against the greenback from Friday’s close of 4.4760/4795.

The analyst said the yuan was reported to hit its lowest level since September 2020 following the move to ease the pressure on China’s housing market and its slowing economy.

The People’s Bank of China reduced its five-year loan prime rate, the benchmark for mortgage rates, by 15 basis points to 4.30 per cent from 4.45 per cent.

He said the ringgit has also been on a downtrend due to the decline in oil prices.

The benchmark Brent crude oil prices currently stood at US$96.15 per barrel, down 0.59 per cent.

Meanwhile, the ringgit was traded mostly higher against a basket of major currencies today.

It rose against the Singapore dollar at 3.2147/2163 from 3.2225/2254 at Friday’s close, increased versus the British pound to 5.2947/2965 from 5.3126/3167 previously, and appreciated slightly against the euro at 4.4886/4901 from 4.5069/5104.

However, the local unit decreased slightly vis-a-vis the Japanese yen at 3.2786/2800 from 3.2767/2795 previously. — Bernama