Ringgit opens lower against US dollar

KUALA LUMPUR: The ringgit opened lower against the US dollar and a basket of major currencies today following an extended decline in oil prices on oversupply worries, dealers said.

At 9am, the local unit was traded was at 4.3250/3350 against the greenback from 4.2800/2900 on last Friday.

London Brent Crude hit its lowest since Aug 11 at US$44.19 per barrel.

A dealer said investors are also concerned over an interest rate increase by the United States (US) Federal Reserve in December.

"Investors are keeping an eye on some market indicators this week, including Gross Domestic Product (GDP) data from Japan and Germany, as well as inflation data from the United Kingdom and the US," he added.

On the home front, Bank Negara Malaysia (BNM) said it is taking measures to reinforce existing rules that have in been in place to prohibit facilitation of ringgit non-deliverable forward (NDF).

"The ringgit remains a non-internationalised currency. Thus, any offshore trading, such as ringgit NDF is not recognised," it said in a statement on Sunday.

BNM also stressed that there was no changes to the Foreign Exchange Administration (FEA) rules or introduction of any new measures.

The central bank added that the foreign exchange market remained open and it stood ready to provide liquidity if necessary to ensure an orderly market.

The ringgit today fell against the Singapore dollar to 3.0539/0627 from 3.0372/0458 last Friday. It declined against the British pound to 5.4274/4413 from 5.4168/4299.

The local note also slipped against the yen to 4.0311/0416 from 4.0199/0308 and dipped against the euro to 4.6723/6848 from 4.6519/6632. — Bernama