KUALA LUMPUR: The ringgit extended gains against the US dollar and other currencies at Thursday’s opening, supported by stabilising oil prices following the International Energy Agency’s (IEA) decision to release additional supply into the market, an economist said.
At 8 am, the local currency edged up to 3.9130/9350 against the greenback from Wednesday’s close of 3.9175/9230.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said oil prices remained a key focus for the market after the IEA’s 32 member countries agreed to release 400 million barrels from strategic petroleum reserves.
The United States also followed the move, announcing the release of 172 million barrels of oil into the domestic market.
"Such decisions aim to stabilise oil prices, especially at the retail level.
"Clearly, the Iran war has taken a toll on retail oil prices, as rising costs can undermine consumers’ purchasing power,” he told Bernama.
At the time of writing, Brent crude rose 7.55 per cent to US$98.92 per barrel, while New York Mercantile Exchange (NYMEX) natural gas prices increased 1.25 per cent to US$3.25 per million British Thermal Units.
"Leaders across the globe are preoccupied with global price pressures and are taking steps to ensure retail fuel prices remain under control,” he said.
Meanwhile, the US Federal Reserve appears set to maintain its restrictive monetary policy stance when the Federal Open Market Committee meets next week.
Amid heightened uncertainties, Mohd Afzanizam expects the ringgit to trade between RM3.9000 and RM3.9500 against the US dollar today.
At the opening, the ringgit rose against the Japanese yen to 2.4596/4738 from 2.4719/4755 at Wednesday’s close, strengthened against the British pound to 5.2360/2654 from 5.2545/2619, and was firmer against the euro at 4.5164/5418 from 4.5412/5475.
The local currency also traded higher against most ASEAN currencies.
It edged up against the Singapore dollar to 3.0661/0839 from 3.0754/0800, and gained against the Thai baht to 12.2346/3119 from 12.3386/3637.
The ringgit strengthened against the Indonesian rupiah to 231.7/233.1 from 232.0/232.4 and improved against the Philippine peso to 6.61/6.66 from 6.62/6.64 on Wednesday. - Bernama
