Ringgit opens higher against US dollar in early trade

KUALA LUMPUR: The ringgit extended last Friday’s upward momentum to trade higher against the US dollar in the early session today on renewed buying interest.

At 9.08am today, the ringgit was quoted at 4.2400/2500 against the US dollar from last Friday’s 4.2640/2700.

AxiCorp global chief market strategist Stephen Innes said the market reacted positively to Sunday’s announcement of the Recovery Movement Control Order (RMCO) by Prime Minister Muhyiddin Yassin.

“The local note should look good on several fronts this week. With improving risk sentiment, as well as equity and currency market volatility decreasing, investors’ hunt for yield will have them checking out catch-up trades across the region. The ringgit could benefit in the context of improving sentiment across regional peers,” he said.

The ringgit also rebounded as oil price rose above US$40 per barrel, supported by the oil nations’ decision to extend production cuts.

At press time, the benchmark Brent crude was recorded at US$41.34 per barrel.

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

The local note appreciated against the Singapore dollar to 3.0523/0606 from last Friday’s 3.0604/0658 and strengthened vis-a-vis the euro at 4.7895/8025 from 4.8328/8409.

It fell against the Japanese yen to 3.9234/9334 from 3.9019/9085 and declined against the British pound at 5.3954/4098 from 5.3859/3947.