Ringgit opens lower versus dollar as trade tension escalates

: The ringgit opened lower against the today following weak demand for the local currency, prompted by escalating trade tension between the United States and .

At 9.00 am, the ringgit stood at 4.1900/1950 versus the US dollar from 4.1860/1900 on Monday.

OANDA Head of Trading Asia- Stephen Innes said despite scheduled talks between US President Donald Trump and President Xi Jinping in Argentina this weekend, the US was highly unlikely to hold off the intended increase in tariffs to 25 per cent on US$200 billion worth of goods.

“The US-China meeting is more than just about trade, it’s about spanning the vast cultural divide and it is important that both sides get it right. On the US side, they are ready to go all out,“ he said Bernama.

As for oil prices, Innes said that the overnight increase would cushion the impact of escalating trade tension.

“Oil prices staged a relief rally overnight as it was said that a global rebalancing agreement to cut output will come out of a sideline meeting between Saudi Crown Prince Mohammed bin Salman and Russian President Vladimir Putin at this week’s G-20 meeting,“ he said.

As of 9am, the benchmark crude stood at US$60.37 per barrel compared with US$59.48 per barrel yesterday.

The ringgit also traded higher against other major currencies.

It was marginally higher against the dollar at 3.0479/0520 from Monday’s close of 3.0484/0530, rose against the yen to 3.6933/6980 from 3.6969/7008 and appreciated against the euro to 4.7481/7555 from 4.7603/7665 yesterday.

It increased versus the British pound to 5.3678/3746 from 5.3727/3791 previously. — Bernama

Source: The Sun Daily

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