Stronger demand lifts ringgit in early session

KUALA LUMPUR: The ringgit advanced against the US dollar in the early session today on better demand for the local note as the greenback, a safe haven-linked currency, succumbed against the backdrop of firm risk-on sentiment.

At 9.23am today, the ringgit was quoted at 4.2640/2720 against the US dollar from 4.2740/2810 at the close yesterday.

In a note, AmBank Group chief economist/head of research Anthony Dass said the greenback has been under heavy pressure since the start of the month and could now extend the downtrend as countries begin relaxing lockdowns. This has helped push crude oil prices to the best month on record.

“The current appreciation of the ringgit is driven by the weakening of the US dollar, strengthening oil prices and growing expectations for a rate cut in July.

“Hence for this pair in June, the most likely scenario is a price rise for the ringgit. On that note, the projected high for June is 4.22 and low at 4.31,” he added.

Meanwhile, the ringgit was traded mostly lower against a basket of benchmark currencies, except against the Japanese yen, where it rose to 3.9080/9157 from 3.9225/9293.

It declined against the Singapore dollar to 3.0505/0569 from 3.0483/0544, was lower against the British pound at 5.3654/3776 from 5.3549/3645 and fell against the euro at 4.8307/8410 from 4.7865/7947.