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KUALA LUMPUR, May 31 – The ringgit opened lower against the US dollar today as investors took a cautious step ahead of the Full Movement Control Order (FMCO) across the country to starting tomorrow, an analyst said.
At 9:01 am, the local currency fell to 4.1420 / 1500 against the greenback from Friday’s close of 4.1320 / 1350.
Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said the sudden announcement of a two-week Full Movement Control Order (FMCO) phase one (June 1–14) on Friday could cause some short-term volatility in the local market.
“Investors may worry about the economic impact of the lockout and will therefore tend to move to the currencies of more stable countries, especially in terms of managing the Covid-19 crisis,” he said. declared to Bernama.
The National Security Council on the Management of Covid-19 has decided to implement a full lockdown of social and economic sectors (first phase) nationwide from June 1, under which not all sectors will be authorized to operate, with the exception of essential sectors of the economy and services.
The decision was made after taking into account the recent Covid-19 situation in Malaysia, with daily cases exceeding 8,000 and active cases exceeding 70,000.
Meanwhile, the Ministry of International Trade and Industry (MITI) announced on Sunday that 18 manufacturing and manufacturing-related services sectors are licensed to operate under the OCAF.
Thirteen of these sectors are allowed to operate at 60% of their labor capacity, while the other five are allowed to operate with 10% of labor.
Against other major currencies, the local note was also traded lower on the open.
The ringgit eased slightly against the Singapore dollar at 3.1293 / 1366 after Friday’s close at 3.1213 / 1238 and weakened against the euro at 5.0495 / 0597 from 5.0344 / 0385.
It also depreciated against the yen at 3.7727 / 7803 against 3.7598 / 7629 and was lower against the British pound at 5.8742 / 8859 from 5.8604 / 8651. – Bernama