KUALA LUMPUR – Global crude oil benchmark prices may continue the downward slide next week and this should put some stress on the ringgit to test the 3.50 level next week, currency trader said.
“Local year-end dollar demand and upbeat US economic data will add more strength to the US dollar, while nervousness over falling crude oil prices will keep oil-producing countries’ currencies under pressure. They could post another week of declines next week.
“As of Friday night, West Texas Intermediate crude oil extended the drop below US$60 as the International Energy Agency cut its 2015 demand forecast, while Brent crude continued its downward slide below US$63 a barrel,” he told Bernama.
Another trader said ringgit could test weaker spot at 3.50 next week. “US$/MYR rate opened higher above 3.49 towards the end of week as crude oil price fell below US$60 for the first time in more than five years.
“The speculators will take the chances to further pressure the ringgit if the crude oil prices drop further,” he said.
For the week just-ended, the ringgit tumbled against the US dollar to 3.4940/4960 from last Friday’s 3.4695/4725.
The local unit weakened against the Singapore dollar to 2.6664/6691 from 2.6348/6391 on Friday, fell against the yen to 2.9483/9502 from 2.8848/8882 last week and depreciated against the British pound to 5.4866/4919 from 5.4325/4376 last Friday.
It also declined against the euro to 4.3423/3459 from 4.2921/2969 previously. – Bernama