Ringgit opens higher on stable oil prices


  • Forex
  • Thursday, 09 Jul 2020

KUALA LUMPUR: The ringgit opened firmer against the US dollar today, supported by stable but quiet trading in crude oil, analysts said.

As of 9 am, the local unit rose to 4.2600/2650 against the greenback from Wednesday’s close of 4.2720/2770.

AxiCorp chief global market strategist Stephen Innes said industries seemed more focused on medium and long-term drivers for oil, but at the same time, traders are keeping an eye out for signs of a reaction to US production data and news on new COVID-19 infection numbers.

"Brent seemed to have settled into a US$40-US$45 per barrel range and while near-term risks remain skewed to the downside, this likely positive for oil barring any medical or therapeutic breakthroughs on the coronavirus,” said Innes.

On the local front, he also told Bernama that as the market is starting to price a September Bank Negara Malaysia (BNM) interest rate cut, this should be favourable for the Malaysian Government Securities (MGS) inflows.

"The 10-year MGS’ real yield looks very attractive in comparison to the equivalent US bonds. I think we should have a better day for the ringgit as the US dollar is also broadly weaker across the board,” he added.

Meanwhile, the ringgit was traded lower against other major currencies except for the Japanese yen which appreciated to 3.9698/9756 from 3.9703/9768 on Wednesday.

The local note fell against the Singapore dollar to 3.0614/0657 from 3.0600/0642 on Wednesday and eased against the euro to 4.8279/8352 from 4.8167/8236.

The ringgit declined against the British pound to 5.3727/3807 from 5.3503/3587 yesterday. - Bernama
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ringgit , US dollar , oil

   

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