Supercharged Commodities May Rescue Ringgit Hit by Covid Surge

Currency has underperformed all its Asian peers so far in May
Palm oil, crude oil prices still high despite recent drop: ANZ

A Rapid KL train travels along an elevated track above deserted streets during a nationwide Movement Control Order (MCO) in Kuala Lumpur on May 25.Photographer: Samsul Said/Bloomberg

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By Y-Sing Liau

May 26, 2021 at 11:06 PM UTC

Updated on

May 27, 2021 at 3:25 AM UTC

This article is for subscribers only.

Malaysia’s worsening Covid outbreak is taking a toll on the ringgit but buoyant commodity prices may offer some support.

Elevated crude and palm oil prices are likely to boost the nation’s export earnings and offer some reprieve to a currency that has trailed all its Asian peers this month, according to Australia & New Zealand Banking Group Ltd. The ringgit has slid about 1.3% versus the dollar in May as Malaysia overtook the global pandemic hotspot of India in confirmed infections per capita.