Ringgit opens higher on back of recovery in crude prices

KUALA LUMPUR: The ringgit opened higher against the US dollar on renewed demand for the local note amid the recovery in global crude oil prices.

At 9.01am, the local unit rose to 4.3570/3650 versus the greenback from 4.3600/3680 at Friday’s close.

AxiCorp chief global markets strategist Stephen Innes said the ringgit has a relatively strong correlation with oil and global risk sentiment.

“Despite the adverse short-term effects from the extended Movement Control Order (MCO), the ringgit should continue to find more sound footing thanks to the calming effects of stable oil prices,” he said.

The international benchmark Brent Crude was stabilising and revolving around US$21.20 per barrel as at 9.26am.

However, the local note was traded lower against other major currencies.

It depreciated against the Singapore dollar to 3.0612/0679 from 3.0594/0657 at last Friday’s close and weakened against the yen to 4.0500/0586 from 4.0494/0576.

Vis-a-vis the pound, the ringgit weakened to 5.3914/4021 from 5.3741/3853 while against the euro, it slid to 4.7143/7234 from 4.6927/7030 previously.