Tuesday 06 Jun 2023
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KUALA LUMPUR (May 11): The ringgit was seen to be continuing its decline against the US dollar as controversial state investment fund 1Malaysia Development Bhd (1MDB)’s deadline for the payment of interest on its bond issuance approaches, while oil prices retreated.

At 12.50pm, the ringgit continued to trade near seven-week lows, weakening 0.18% to trade at 4.0540 against the greenback, compared to its closing of 4.0468 yesterday (May 10), according to Bloomberg data.

Meanwhile, crude oil prices were also down, with WTI crude futures down 0.47% at US$44.45 per barrel, while Brent crude fell 0.42% to US$45.33 per barrel.

On the other hand, the benchmark KLCI index gained 3.58 points or 0.22% to 1,639.42, as at noon market break today.

1MDB is due to pay the interest on its US$1.75 billion bond issued by its unit, 1MDB Energy Ltd, today. The payment due for the 5.99% coupon issuance totals US$52.4 million.

There has been some speculation that 1MDB could potentially default on the payment, following its dispute with Abu Dhabi’s International Petroleum Investment Company (IPIC), the party backing US$3.5 billion of 1MDB’s issuances.

Last month, the dispute caused the fund to default on another interest payment, due to IPIC’s non-payment of the interest due on April 18.

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