Ringgit opens higher against US dollar for the third consecutive day

KUALA LUMPUR: The ringgit was higher against the US dollar for the third consecutive day following renewed demand for the local note, which rose to a five-month high yesterday as global investors were chasing for yield.

At 9am, the ringgit stood at 4.1820/1880 against the greenback from 4.1880/1920 recorded at closing yesterday.

A dealer said the ringgit would continue to improve much further, influenced by the recovery in the crude oil price that is trading above US$45 per barrel for the first time since March this year, supported by better than consensus inventory draws.

For today, investors would be keeping an eye on the country’s unemployment rate as a gauge of economic performance, he said.

Meanwhile, AxiCorp Chief Global Market Strategist Stephen Innes said that the oil analysts are underestimating the absolute resilience of the oil trading community to look through the weak patch in oil demand in July in favour of September.

“Two things that suggest a mini pullback before all systems go are the non-farm payrolls to be released tonight and the Aug 15 US-China trade talks.

“If we can clear the latter I think the ringgit versus the US dollar could coat tail the Chinese Yuan versus US dollar lower and we might even test 4.15 if oil can start to hash out a new base Brent at US$45 per barrel onwards,” he told Bernama.

Against a basket of currencies, the ringgit was traded higher.

It rose against the Singapore dollar to 3.0541/0601 from 3.0558/0599 recorded at yesterday’s close and went up versus the yen to 3.9610/9670 from 3.9663/9708.

Vis-a-vis the British pound, the local note appreciated to 5.4939/5022 from 5.5177/5234 and improved against the euro to 4.9645/9728 from 4.9665/9730.