Ringgit opens higher thanks to crude recovery

KUALA LUMPUR: The ringgit opened higher against the US dollar today in tandem with the recovery in global crude oil prices.

At 9.14am, the local unit increased to 4.3580/3680 versus the greenback from 4.3610/3680 at yesterday’s close.

The international benchmark Brent Crude was up 3.71% to US$21.19 a barrel as Opec+ cuts on output provided some support.

AxiCorp chief global markets strategist Stephen Innes said the ringgit’s price sensitivity continues in the direction of global crude oil price.

“Supply (global crude oil) has more than peaked, which from a fundamental perspective, should provide some semblance of comfort for the ringgit,” he said.

At the opening, the local unit was traded mostly higher against other major currencies.

It appreciated against the Singapore dollar to 3.0783/0856 from 3.0787/0847 at yesterday’s close but weakened against the yen to 4.0893/0999 from 4.0872/0945.

Vis-a-vis the pound, the ringgit rose to 5.4349/4478 from 5.4425/4521 while against the euro, it improved to 4.7280/7406 from 4.7404/7493 yesterday.