Ringgit rebounds on higher oil prices

KUALA LUMPUR: The ringgit rebounded to open slightly higher against the US dollar today on renewed demand as the oil price rose, said a dealer.

At 9.05 am, the local currency stood at 4.1620/1670 versus the greenback compared with 4.1630/1670 at yesterday's close.

The dealer said the ringgit improved ringgit as uncertainty over the local political scenario has abated.

As at time of writing, the benchmark Brent crude rose 0.27 per cent to US$40.57 per barrel.

However, the dealer said the currency market sentiment remains cautious following the government decision to extend the Conditional Movement Control Order (CMCO) for another two weeks until Nov 9, 2020 in Selangor, Kuala Lumpur and Putrajaya.

She said the number of new COVID-19 cases stoked fears of an increase in the unemployment rate, as well as weaker consumer purchasing power.

Nevertheless, AmBank Research expects that ringgit to trade between its support levels of between 4.1557 and 4.1610, while resistance is pinned at between 4.1705 and 4.1750.

Meanwhile, the ringgit was traded mostly lower against other major currencies.

It fell against the Singapore dollar to 3.0614/0662 from yesterday's close of 3.0604/0644, decreased against the yen to 3.9718/9769 from 3.9689/9739 and slipped versus the euro to 4.9195/9266 from 4.9157/9221.

The local currency, however, rose against the British pound to 5.4214/4288 from 5.4319/4392. - Bernama
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