Ringgit rebounds at opening as crude oil stabilises

KUALA LUMPUR: The ringgit rebounded against the US dollar on mild demand for the local currency riding on the stabilising crude oil price, a dealer said.

At 9am, the ringgit stood at 4.2110/2160 against the greenback from 4.2180/2230 recorded at 6pm on Tuesday.

AxiCorp chief global market strategist Stephen Innes said the ringgit continues to climb primarily due to the weaker US dollar and favourable divergence between local Malaysian government securities real yields and US real yields, making all-time lows.

“As we noted yesterday, the ringgit rally is being stoked by the global market unquenching chase for yield.

“While adding positively to that narrative, the monetary policy debate is centring on whether Bank Negara will offer a cut or a dovish pause at the Sept 10 policy review,” he said.

Against the Singapore dollar, the ringgit fell to 3.0681/0729 from 3.0672/0719 and down to 3.9884/9936 from 3.9796/9855 versus the yen.

Vis-a-vis the British pound, the local note depreciated to 5.5088/5158 from 5.5079/5161 but rose to 4.9728/9804 from 4.9747/9810 compared to the euro.