KUALA LUMPUR: The spike in crude oil prices helped lift the ringgit, which finished higher against the US dollar and other major currencies at today's close.
At 6 pm, the local currency strengthened to 4.0850/0890 versus the greenback from yesterday’s close of 4.0870/0910, as benchmark Brent crude rose to over US$94 per barrel compared with US$71.57 on July 1, 2026.
Deputy Finance Minister Liew Chin Tong said earlier today that every US$1 increase in oil prices per barrel is expected to generate an additional RM300 million in government revenue.
Meanwhile, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit was traded in a tight range between RM4.0860 and RM4.0975 to the US dollar today as market sentiment remained cautious.
"Disruptions to vessel traffic in the Strait of Hormuz and the Bab al-Mandab Strait, along with the United States government's import tariff measures, remained the main focus of market participants,” he told Bernama.
Earlier today, US President Donald Trump announced a 100 per cent import tariff on generic drugs from August 2028 unless manufacturers relocate their production to the US.
Meanwhile, the ringgit traded higher against a basket of major currencies at the close today.
It appreciated vis-a-vis the euro to 4.6585/6631 from 4.6682/6727 at Tuesday’s close, strengthened against the Japanese yen to 2.5057/5081 from 2.5123/5148 yesterday and rose versus the British pound to 5.4612/4666 from 5.4868/4922 previously.
The local currency also performed better against regional currencies.
It advanced versus the Singapore dollar to 3.1635/1668 from 3.1682/1716 at yesterday’s close and edged up against the Indonesian rupiah to 228.0/228.3 from 228.4/228.8.
The ringgit climbed vis-a-vis the Thai baht to 12.0787/0944 from 12.1420/1579 at the previous close and rose against the Philippine peso to 6.61/6.62 from 6.62/6.63 yesterday. - Bernama
