The ringgit’s upbeat performance was also fuelled by the stronger crude oil prices after the Organisation of the Petroleum Exporting Countries (OPEC) forecasted demand for the commodity to be strong following rising fuel consumption and output disruptions in the United States (US).
At 9 am, the local unit was firmer at 4.1450/1500 against the greenback from 4.1490/1515 at Monday’s close.
However, the local note’s performance was capped by expectations of the US’ high August Consumer Price Index (CPI), slated to be released later today.
Many analysts have expressed concerns that the CPI data hike would lead to a quicker tapering of asset purchases by the US Federal Reserve (US Fed).
Citing Goldman Sachs’ statement issued on Monday, ActivTrades trader Dyogenes Rodrigues Diniz said the investment bank saw a 70 per cent chance that the US Fed would announce the tapering process at the Federal Open Market Committee (FOMC) meeting in November.
"Investors have already anticipated the possible tapering process and this has caused the dollar to appreciate against the ringgit.
"From a technical point of view, the US dollar-ringgit pair could rise as high as 4.2200 in a few days,” he told Bernama.
At the opening, the ringgit was traded mixed against a basket of major currencies.
It strengthened against the Singapore dollar to 3.0875/0915 from 3.0903/0926 at Monday’s close and appreciated against the yen to 3.7668/7714 from 3.7681/7703 yesterday.
The local currency eased to 5.7363/7432 vis-a-vis the pound from 5.7356/7390 previously and slid to 4.8944/9003 against the euro from 4.8921/8950 yesterday. - Bernama