Bearish economic outlook weighs on ringgit

KUALA LUMPUR: The ringgit was lower against the US dollar in the early session today on weaker demand for the local note due to the country’s bearish economic outlook.

At 9.20 am, the ringgit was quoted at 4.3190/3280 against the US dollar from 4.3050/3150 recorded last Friday.

A dealer said an open economy like Malaysia is vulnerable to external weaknesses brought upon by uncertainty caused by the COVID-19 pandemic, which has significantly affected global economic growth prospects and has halted a majority of economic activities worldwide.

“Furthermore, market players expects Malaysia to experience economic contraction for the first time in a decade with Bank Negara Malaysia (BNM) recently announced its projections that the country’s gross domestic product (GDP) growth will be between -2 per cent and 0.5 per cent this year amid,” he added.


Leave a Reply

Your email address will not be published. Required fields are marked *