Ringgit opens higher on back of stronger demand

KUALA LUMPUR: The ringgit opened higher against the US dollar today on better demand for emerging Asian currencies, including the ringgit, as the greenback loses its safe-haven shine with investors optimistic of a global economic recovery.

At 9.16am today, the ringgit was quoted at 4.2500/2560 against the greenback from 4.2750/2800 at the close yesterday.

A dealer said market players hope the worst of Covid-19’s economic slowdown is behind Asia and the developed world, with more and more countries reopening their economies to pave the way for a broader recovery in risk sentiment.

“Furthermore, the spike in global oil price also helped to boost market sentiment towards the ringgit, as this is positive for the country’s oil and gas revenue,” he added.

International benchmark Brent crude gained 1.95% to US$40.34 per barrel while WTI was 2.66% higher at US$37.79 per barrel.

Meanwhile, the ringgit was traded higher against a basket of benchmark currencies.

It rose against the Singapore dollar to 3.0425/0474 from 3.0503/0547 and was higher against the Japanese yen at 3.9171/9237 from 3.9686/9736.

The local note advanced against the British pound to 5.3529/3613 from 5.3715/3787 and improved against the euro at 4.7579/7650 from 4.7790/7859.