Ringgits opens lower amid decrease in oil prices

KUALA LUMPUR: The ringgit opened lower today against the US dollar as investors stayed on the sidelines following the decrease in oil prices, said a dealer.

At 9am, the local currency stood at 4.1450/1500 against 4.1370/1410 recorded at Wednesday’s closing.

Yesterday, analysts had said that oil prices will begin to fall before the end of the year, even though they could increase in the near term.

“Although the prices might increase from the current levels this month, the market is ripe for a correction,” he said.

The benchmark Brent crude was recorded at US$85.85.

The greenback has also strengthened, with the 10-year US Treasury yield jumping 12 basis points on Wednesday to 3.18%, the highest level since July 2011.

The benchmark US bond has also soared to a seven-year high as investors wait for another interest rate hike by the Federal Reserve.

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

It slightly increased against the Singapore dollar to 3.0008/0055 from 3.0092/0132 on Wednesday, and strengthened versus the euro to 4.7568/7634 from 4.7853/7916.

The local currency also rose against the Japanese yen to 3.6229/6283 from yesterday’s 3.6344/6382, and gained against the British pound to 5.3611/3696 from 5.3798/3870.