Ringgit opens higher against US$ on optimism over G20 meeting

  • Forex
  • Monday, 24 Jun 2019

KUALA LUMPUR: The ringgit opened higher against the US dollar today on positive sentiment arising from the upcoming meeting between President Donald Trump and Chinese President Xi Jinping at G20 summit this Friday.

At 9am, the ringgit was at 4.1430/1460 against the greenback from 4.1480/1510 at Friday’s close.

MIDF Research in a note said the ringgit’s upward momentum was supported by firmer crude oil prices and the possibility of an interest rate cut by the US Federal Reserve in the coming months.

"The signal hinted by the Fed of an interest rate cut indirectly appreciate currencies of emerging economies including Malaysia. We maintain our call that ringgit to average at 4.12 and register year-end target at 4.10 in 2019,” it said.

At 9 am, oil benchmark Brent Crude climbed to US$64.47 per barrel compared with US$64.10 per barrel last Friday. 

At last Friday’s close, the ringgit was lower against a basket of major currencies.

The local currency slipped against the pound to 5.2807/2862 from 5.2505/2552 and depreciated against the Singapore dollar to 3.0591/0625 from 3.0545/0576.

The ringgit was lower against the yen at 3.8597/8636 from 3.8568/8607 and against the euro, the local currency inched down at 4.7147/7198 from 4.6864/6915. - Bernama

Ambank research expects rising global headwinds and rising geopilitical tension to weigh on the ringgit.

In a note, it said Moody's downgraded Petronas on Friday on its local and foreign currency ratings from A1 to A2.

Furthermore, the ratings agency downgraded Petronas ratings outlook from A3 negative to A2 stable.

"We expect MYR to trade between our support level of 4.1377 and 4.1429 while our resistance is pegged at 4.1534 and 4.1578," said Ambank.