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Malaysia: Ringgit opens higher on rising oil prices
KUALA LUMPUR, Nov 7: The ringgit opened higher against the US dollar today on increased demand, buoyed by rising crude oil prices, said a dealer.
At 9.10 am, the local unit traded at 4.2235/2265 against the greenback from 4.2300/2330 on Monday.
OANDA Head of Trading Asia-Pacific Stephen Innes said despite the escalation of regional geopolitical tensions on the back of US President Donald Trump’s Asia tour, the Organisation of Petroleum Exporting Countries (OPEC)-inspired oil price rally underpinned sentiment for the ringgit.
He said with OPEC likely to favour a deal extension to cut oil supply, at a meeting on Nov 30, this would also see the ringgit appreciating further.
“However, anything short of a deal extension could cause a sharp sell-off in oil prices. We expect the ringgit to stay at the current range until more OPEC details are forthcoming.
“If we add the definite macro overlay and Malaysia’s strengthening position in the global supply chain in terms of exports, the future looks bright for the domestic economy and the ringgit,” Innes told Bernama.
However, against a basket of major currencies, the ringgit was traded easier today.
It declined against the Singapore dollar to 3.1021/1061 from 3.0991/1029 on Monday and eased versus the yen to 3.7130/7159 from 3.7053/7089 yesterday.
The ringgit fell to 5.5623/5676 from 5.5421/5478 compared with the British pound on Monday but gained against the euro to 4.9039/9087 from 4.9072/9124, previously.–Bernama
Source: http://www.themalaysiantimes.com.my/ringgit-opens-higher-rising-oil-prices/