KUALA LUMPUR: The ringgit opened higher against the US dollar today backed by the weaker greenback index and stable oil prices, said an analyst.
As at 9am, the local unit was trading better at 4.2540/2580 against 4.2600/2650 on Tuesday’s close.
AxiCorp chief global market strategist Stephen Innes, however, cautioned that the market is far more uncertain about oil’s recovery than the unambiguous view for a weaker US dollar.
“But with oil likely to range trade throughout the summer, ultimately, it’s the fate of the US dollar, not oil prices, that will steer the ringgit ship,” he said in a note.
According to a report, Wall Street analysts said the weakening of the US dollar was due to risky assets gaining momentum as Covid-19 recovery forges ahead.
On the oil price market, benchmark Brent crude was trading relatively stable at US$44.01 per barrel, declining marginally 0.7%.
However, the ringgit was traded lower against other benchmark currencies.
It eased against the Singapore dollar to 3.0730/0775 from 3.0654/0697 on Tuesday and dipped versus the Japanese yen to 3.9817/9858 from 3.9717/9774 previously.
The local currency was also lower versus the British pound to 5.4153/4209 from 5.4047/4127 and weakened against the euro to 4.9053/9112 from yesterday’s 4.8743/8817.