Ringgit eases against US dollar despite rebounding oil prices

KUALA LUMPUR: The ringgit opened slightly lower today after three days of consecutive gains despite a rebound in oil prices.

At 9.05am, the local currency was traded at 4.1750/1810 against the US dollar from 4.1700/1750 at Wednesday’s close.

The market was closed yesterday for Awal Muharram.

AxiCorp chief global market strategist Stephen Innes said although the greenback gained strength, the local note continued to trade well following Malaysia’s admirable handling of its Covid-19 pandemic, suggesting the economic reopening recovery is up and running.

“Additionally, Bank Negara Malaysia (BNM) has ample room in its policy tool kit to further slash interest rates, and this should provide a most timely bounce to the reopening recovery.

“Malaysia Government Securities remain a prime destination for yield-seeking investors, even more so as oil prices remain steady towards recent highs, which generally act as a favourable stabilising mechanism for the ringgit,” he told Bernama.

As at press time, Brent crude oil price rose 0.16% to US$44.97 per barrel.

Meanwhile, the local unit strengthened against the Singapore dollar to 3.0545/0601 from 3.0572/0620 on Wednesday and was firmer against the yen at 3.9491/9555 from 3.9575/9634.

The ringgit rose against the euro to 4.9566/9654 from 4.9679/9841 but fell against the British pound to 5.5214/5310 from 5.5173/5248 previously.