KUALA LUMPUR: The ringgit opened slightly higher against the US dollar this morning, backed by firmer crude oil prices amid market volatility, as the Full Movement Control Order (FMCO) was set to be extended, a dealer said.
At 9.02am, the local note rose to 4.1485/1515 versus the greenback from 4.1560/1575 at Friday’s close.
At the time of writing, benchmark Brent crude oil increased 0.38 per cent to US$76.47 per barrel.
Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said the firmer Brent crude oil price may cushion worries over the current FMCO that would remain in place due to the number of daily COVID-19 cases hovering above 4, 000 cases.
"However, if further output cuts were to be eased during the meeting of the Organisation of the Petroleum Exporting Countries (OPEC) members this Thursday, the ringgit could see some weakening.
"Higher production will limit gains in crude oil prices, which may then also adversely impact the ringgit given the causality of Brent crude oil price towards the ringgit," he told Bernama.
At the opening, the ringgit was also traded higher against a basket of major currencies.
It rose against the British pound to 5.7623/7664 from 5.7781/7802 at Friday’s close and improved against the Japanese yen to 3.7479/7509 from 3.7526/7540.
The local unit also appreciated vis-a-vis the euro to 4.9521/9556 from 4.9627/9645 on Friday and gained against the Singapore dollar to 3.0901/0926 versus 3.0964/0980 previously. - Bernama