Ringgit opens higher amid firmer oil price

KUALA LUMPUR: The ringgit opened slightly higher against the US dollar today amid the firmer crude oil prices and weaker performance of the greenback, dealers said.

At 9.00 am, the local currency stood at 4.0845/0875 against the greenback compared with Tuesday’s close of 4.0850/0900.

Axi chief global market strategist Stephen Innes said as an economy dependent on a large oil export quotient, the ringgit has an ace up its sleeve this week as oil prices are soaring ahead of the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) meeting on Nov 30, on expectation of extension of current production cuts.

Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the risky assets were gaining momentum on the back of positive external environment which saw US Dow Jones surpassing the 30,000 points last night.

"As risk appetite improved on the market, subduing demand for the safe-haven currency, the US dollar depreciated too. The dollar index (DXY), which measures the greenback against six major peers, fell further to 92.226 points.

"The ringgit should continue to appreciate in the immediate term. However, there could be a speed bump following concern over the sharp rise in new COVID-19 cases to over 2,000 cases in the country yesterday,” he told Bernama.

He added that investors are also awaiting the outcome of the Budget 2021 voting in Parliament tomorrow, hence, the ringgit against US dollar pair is expected to trade in a tight range today.

Meanwhile, the ringgit was traded mixed against other major currencies.

The local note was slightly lower against the Singapore dollar at 3.0440/0467 compared with Tuesday’s close of 3.0435/0484 and declined versus the euro to 4.8597/8637 from 4.8538/8614.

It rose vis-a-vis the yen to 3.9094/9126 from 3.9192/9251 on Tuesday and increased against the British pound to 5.4565/4609 from 5.4588/4659. - Bernama
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