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Malaysia: Ringgit supported by renewed interest, rising oil prices
KUALA LUMPUR: The ringgit opened higher against the US dollar today on renewed buying interest in the local note, as news on proposed US tariffs on aluminium and steel continued to linger over the market, said a dealer.
At 9 am, the local note was quoted at 3.8990/9040 versus the greenback from Monday’s 3.9050/9080.
OANDA Head of Trading Asia-Pacific, Stephen Innes said in addition, higher oil prices following reports of a drop in crude inventories at the US Cushing Oklahoma storage facility, also supported the ringgit. Benchmark Brent crude were traded at 0.32 per cent higher at US$65.75 per barrel.
On the local front, Innes said Bank Negara Malaysia (BNM) is expected to hold its interest rate policy steady this week, with the central bank’s preference for a stronger ringgit to act as a cantilever for tightening monetary conditions, as the economy continues to overperform through 2018.
“Overall, BNM’s statement should be beneficial for the economy and be supportive of the bond markets.
“However, given the current currency malaise on the regional market, it could be less favourable in that regard,” said Innes. BNM will be holding its Monetary Policy Meeting on Wednesday. Meanwhile, the local note, traded lower against a basket of major currencies.
It depreciated against the Singapore dollar to 2.9614/9654 from 2.9588/9617 on Monday and declined versus the British pound to 5.4028/4106 from 5.3944/3001.
It decreased against the euro to 4.8164/8238 from 4.8110/8162 and weakened against the yen to 3.6679/6740 from 3.6983/6022. – Bernama
Source: https://www.thestar.com.my/business/business-news/2018/03/06/ringgit-supported-by-renewed-interest-drop-in-oil-prices/#sqVh10RZZmSlIA7p.99