KUALA LUMPUR, Sept 30 – The ringgit closed lower against the US dollar today in line with falling oil prices amid market scepticism over the Organisation of the Petroleum Exporting Countries’ (OPEC) agreement to cut oil output. At 6pm, the ringgit was quoted at 4.1320/1390 against the greenback from 4.1220/1270 yesterday.
A dealer said uncertainty in oil prices continued as the market questioned if the agreement would have much impact on the crude oil global oversupply. OPEC members, with the exception of Iran, Libya and Nigeria, struck a deal at the meeting in Algeria to cut output to between 32.5 million and 33 million barrels per day (bpd) from 33.4 million bpd currently.
He added that oil prices retreated amid scepticism over the OPEC deal which leads to profit-taking, and the ringgit which is perceived as a commodity currency followed suit. Global benchmark Brent crude futures were down 75 cents at US$48.49 a barrel in late Asian session while US West Texas Intermediate crude oil went down 69 cents to US$47.14 a barrel.
The local note also traded lower against most major currencies except the Euro. It fell against the Singapore dollar to 3.0269/0325 from Thursday’s close of 3.0227/0274 and declined against the yen to 4.0862/0944 from 4.0647/0708 yesterday. The ringgit also eased against the British pound to 5.3596/3704 from 5.3574/3647 but managed to advance against the Euro to 4.6159/6253 from yesterday’s 4.6228/6288. — Bernama