Ringgit lifts on optimism over oil prices

KUALA LUMPUR: The ringgit opened slightly better than the US dollar following the weaker greenback as risk appetite rose amidst the rising COVID-19 cases in the United States. As at 9 am, the ringgit was quoted at 4.2800/2850 compared with 4.2840/2900 last Friday.

Kenanga Research in a note said positive news of the lower COVID-19 cases in Malaysia and optimism in the oil market also supported the positive sentiment for the ringgit.

It said the ringgit could be pressured this week on the back of risk-off mode as global COVID-19 cases continue to rise, while the market is expecting Bank Negara Malaysia (BNM) to slash its Overnight Policy Rate (OPR) on July 7.

"Likewise, the house expects BNM to cut OPR by 25 bps to reinforce fiscal measures to further support the economic recovery,” said Kenanga Research. Meanwhile, AmBank Research is expecting ringgit to trade between its support level of 4.2764 and 4.2809 while its resistance is pinned at 4.2941 and 4.2990.

Meanwhile, the ringgit was traded mixed against other benchmark currencies. Versus the Japanese yen, the local note improved to 3.9740/9798 from 3.9855/9918 last Friday but remained unchanged against the Singapore dollar at 3.0718/0765 from 3.0718/0766.

The ringgit fell against the British pound to 5.3406/3473 from 5.3332/3423 and declined against the euro to 4.8206/8275 from 4.8101/8185 previously. - Bernama