Ringgit firms to over 16 month-high as oil prices rally, breaks 4 psychological level

The ringgit advanced about 0.2 percent to 3.998 to the dollar, breaking the psychologically significant 4 level

The Malaysian ringgit strengthened on Friday to its highest level against the U.S. dollar since August 2016, boosted by higher oil prices.

The ringgit advanced about 0.2 percent to 3.998 to the dollar, breaking the psychologically significant 4 level.

"There are a few factors at work: the latest catalyst must be a confluence of oil prices being very buoyant...paired with a dollar that is unable to hold its footing," said Vishnu Varathan, senior economist at Mizuho Bank.

"Malaysia is one of the few countries here which benefits all around from oil."

Last month, the World Bank raised its 2017 growth estimate for Malaysia's economy to 5.8 percent, buoyed by burgeoning domestic demand and an improved labour market. - Reuters