Ringgit rebounds in early trade on higher oil prices

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KUALA LUMPUR: The ringgit rebounded to open slightly higher against the US dollar this morning as the three-week high oil prices helped boost investors’ appetite, dealers said.

At 9.04am, the local unit was traded at 4.4100/4180 against the greenback from 4.4170/4230 on Monday.

Growing hopes for a cut in oil production among major producers, especially the Organisation of the Petroleum Exporting Countries (Opec) which collectively produce more than a third of the world’s oil, have sent Brent crude oil prices to nearly US$49 a barrel.

A dealer said the positive overnight closing of Wall Street would also influence demand later.

Nevertheless, he said, the cautious stance on the back of a possible faster-than-expected US interest rate increase would weigh on sentiment.

Against other major currencies, the local unit traded mostly easier.

It fell against the Singapore dollar to 3.1028/1095 from 3.0994/0041 on Monday, weakened against the yen to 3.9906/9982 from 3.9857/9930 and narrowed versus the British pound to 5.5138/5260 from 5.4479/4558.

However, the ringgit rose vis-a-vis the euro to 4.6922/7021 from 4.6957/6837 yesterday.