Buoyed by oil prices, ringgit opens higher against US dollar

KUALA LUMPUR: The ringgit traded higher against the US dollar at the opening today supported by relatively firmer crude oil prices, which has risen above the US$45 level.

At 9am, the local unit was traded at 4.1830/1890 against the greenback, from Wednesday’s close of 4.1900/1950.

Brent crude was trading at 0.31% easier at US$45.29 per barrel, as at the time of writing.

AxiCorp chief global market strategist Stephen Innes said, provided China reaffirms its phase one trade deal inked with the US when the two sides engage in key talks on Aug 15, the ringgit will also continue to find support from the better-than-expected global economic recovery.

“The better economic recovery will likely shift to a weaker US dollar ahead of the September Federal Open Market Committee, but the rising US yields present a challenge to that view,” he said in a note today.

Meanwhile, the ringgit was traded mostly higher against a basket of major currencies.

It appreciated against the British pound to 5.4634/4729 from 5.4675/4745 on Wednesday and was marginally higher against the Singapore dollar to 3.0504/0552 from 3.0506/0547.

Vis-a-vis the yen, the local note rose to 3.9203/9271 from 3.9232/9290, while against the euro, it dropped to 4.9405/9480 from 4.9300/9375 yesterday.