Ringgit opens higher on back of better demand

KUALA LUMPUR: The ringgit opened higher against the US dollar today on better demand for the local note despite lower global oil price and weak US inventory reports.

At 9.05am today, the ringgit was quoted at 4.2690/2770 against the US dollar from yesterday’s 4.2720/2800.

AxiCorp global chief market strategist Stephen Innes said the local note pegged to fluctuations in the oil market.

At press time, Brent crude was at US$40.51 per barrel, down by 1.63%.

“Unfortunately, the volatility has been pointing to the downside with oil traders fretting over the macro landscape as the US inventory reports suggest demand continues to wane,” he told Bernama.

According to the US commerce department, wholesale inventories rose 0.3% in April 2020, while stocks at wholesalers declined to 1.1% in March.

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

The local note fell against the euro to 4.8406/8501 from 4.8124/8227 on Tuesday and declined against the Singapore dollar to 3.0710/0774 from 3.0661/0723.

The ringgit was also lower versus the British pound at 5.4314/4421 from 5.4007/412 and slipped vis-a-vis the yen to 3.9612/9694 from 3.9589/9674.