Ringgit strengthens at opening ahead of Opec meeting

KUALA LUMPUR: The ringgit recovered on Monday ahead of this week’s Organization of the  Petroleum Exporting Countries (Opec) meeting which could put in motion efforts to scale back massive oil cuts, a dealer said.

As at 9am, the local unit strengthened to 4.2600/2650 against the greenback from Friday’s close of 4.2650/2690.

AxiCorp chief global market strategist Stephen Innes said the output cut effectively carried out by Opec top producers has helped to stabilise the market.

However, he noted that July could be a shaky month for oil as the recent surge in coronavirus infections in the US and elsewhere have brought demand risk back into focus.

Meanwhile, the ringgit was traded mostly lower at the opening except against the yen, where it rose to 3.9869/9920 from 3.9931/9979.

The domestic unit dropped against the Singapore dollar to 3.9869/9920 from 3.9931/9979, weakened to 5.3855/3927 from 5.3773/3845 versus the British pound and opened lower at 4.8198/8271 from 4.8152/8210 when compared with the euro.