Ringgit higher after largest crude oil draw report

KUALA LUMPUR: The ringgit opened higher against the US dollar today after overnight crude oil prices jumped on a major draw in crude oil inventory report.

At 9.04am, the ringgit stood at 4.2800/2850 against yesterday’s close of 4.2825/2875.

The American Petroleum Institute survey estimated a significant draw in crude oil inventories of 8.156 million barrels for the week ended June 26, which was much higher than analysts’ guesses.

AxiCorp global chief market strategist Stephen Innes said improving risk sentiment and firmer oil prices had driven the ringgit to its most significant monthly advance this year as Asia currency came back in focus, supported by improving Chinese data points.

“I would suggest 4.2700-4.2850 range for the ringgit today, as I feel more bullish than bearish, with oil prices stabilising higher and risk sentiment in a better place to open up the month,” he told Bernama.

The crude Brent, however, was lower at US$41.15 per barrel, while the West Texas Intermediate rose to US$39.79 per barrel.

Against other benchmark currencies, the ringgit was traded mostly lower

The local note depreciated against the British pound to 5.3004/3083 from 5.2525/2603 yesterday, declined versus the Singapore dollar to 3.0707/0745 from 3.0646/0691 and dropped against the euro to 4.8060/8129 from 4.7977/8050.

The ringgit, meanwhile, rose vis-a-vis the Japanese yen to 3.9615/9672 from 3.9726/9784.