Ringgit rebounds on firmer oil prices

KUALA LUMPUR: The ringgit rebounded in early trade on Wednesday as risk appetite for the local currency improved, thanks to the firmer oil prices.

At 9.00 am, the local currency strengthened to 4.0390/0420 against the US dollar from Tuesday’s close of 4.0420/0450.

At press time, the Benchmark Brent crude rose 0.2 per cent to US$65.37 per barrel due to concerns over the ongoing supply disruptions.

Axi chief global market strategist Stephen Innes said central banks in Asia are forced to recalibrate their policy with the United States Federal Reserve (US Fed), allowing the US economy to run hot, potentially weakening the greenback.

However, the greenback posted modest gains last night after US Fed’s chair Jerome Powell pushed back on suggestions that loose monetary policy risked unleashing inflation.

In his speech to the Senate Banking Committee on Tuesday, Powell said the central bank plans to keep up its growth-stoking policies, with a focus on getting Americans back to work.

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

It fell against the Singapore dollar to 3.0608/0642 from 3.0591/0618 on Tuesday and depreciated versus the British pound to 5.7071/7118 from 5.6948/6998 yesterday.

The local currency, however, rose vis-a-vis the Japanese yen to 3.8328/8360 from yesterday's 3.8393/8425 and weakened against the euro to 4.9078/9131 from 4.9106/9147 previously. - Bernama

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