International News 21/02
-
Malaysia's Ringgit Hits Record Lows in 1998, What's Happening?
The Malaysian ringgit is approaching its 1998 record low against the US dollar due to weakening exports and a strengthening US currency. Data shows that the ringgit is currently about 2% away from its lowest level of 4.885 per US dollar. In 2024, the ringgit has already weakened nearly 4% against the US dollar and about 2% against the Singapore dollar. Analysts warn that the ringgit may hit a new all-time low due to sluggish economic growth and a lack of export recovery. The decline in exports is attributed to China's slowing economy, which has affected Malaysia's exports for the past ten months. Despite Malaysia's current account surplus, its ratio to gross domestic product has decreased, raising concerns about the country's economic stability.
Brent oil prices closed slightly higher, supported by ongoing conflicts in the Middle East.
The increase was driven by supply concerns in the Middle East, but offset by weakening demand. Earlier this week, Brent crude oil prices closed slightly higher at $83.56 per barrel for the April 2024 delivery contract. Unfortunately, the West Texas Intermediate (WTI) crude oil price for the March 2024 delivery contract was not available due to the US market holiday. Thinner trading volumes were observed in the oil market due to the Presidents' Day holiday in the US, which led to earlier settlement of Brent futures. Last week, both Brent and WTI futures had risen, indicating an increasing risk of conflict in the Middle East. Over the weekend, an Israeli attack disrupted operations at a major hospital in Gaza, while Houthi fighters in Yemen claimed responsibility for an attack on an oil tanker bound for India. The US has proposed a ceasefire in Gaza and opposed the Israeli attack to the UN Security Council.
Apple faces a 500 million Euro fine in the EU for infringing competition rules.
The European Union plans to fine Apple 500 million euros for allegedly violating competition law in the EU. The penalty is related to Apple's practices in the music streaming market, where it is accused of distorting competition through its App Store rules. Specifically, Apple has been accused of using these rules to prevent other app developers from informing users about purchase options outside of their platform. The fine is expected to be announced in the coming month. Both the European Commission and Apple have declined to comment on the report. This is not the first time that Apple has been fined for various violations.