A customer counts her ringgit notes outside a money changer at the central business district in Singapore in this August 25, 2015 file photo.  Malaysia's ringgit jumped more than 5 percent to a five-week high on October 7, 2015 on stop-loss dollar selling and higher local stocks.  The ringgit, the worst performing Asian currency so far this year, surged as much as 5.2 percent to 4.1600 per dollar, its strongest since Sept 1.     REUTERS/Edgar Su/Files

Malaysia: Ringgit rebounds as risk-on mood, oil price improve

KUALA LUMPUR: The ringgit rebounded to open higher on Tuesday as risk-on mood and steady oil prices supported demand.

As at 9.07 am the ringgit was traded at 4.1660/1720 versus the greenback compared with 4.1730/1780 at Monday’s close.

AxiCorp chief global market strategist Stephen Innes said the ringgit is trading stronger today, supported by improving global risk sentiment, triggering a weaker US dollar.

“At the same time, higher oil prices round out the trifecta of bullish delights.

“Still, the bullish view is probably getting held back by yesterday’s worse-than-expected trade numbers and the constant cloud of political uncertainly ahead of China’s Golden Week, when liquidity typically dries up,” he told Bernama.

It was reported that China’s tourism industry expects more than 600 million trips to be taken during the eight-day Golden Week holiday, which begins on Oct 1.

Malaysia’s total trade declined 4.6 per cent to RM145.06 billion in August compared with same month last year, with exports falling 2.9 per cent to RM79.14 billion and imports slipping 6.5 per cent to RM65.92 billion.

Against other major currencies, the ringgit was also traded mixed.

It appreciated against the yen to 3.9511/9571 from 3.9611/9662 and was higher versus the British pound to 5.3596/3694 from 5.3615/3687.

In contrast, the local unit was lower against the Singapore dollar to 3.0364/0426 from 3.0340/0385 and was weaker against the euro at 4.8638/8721 from 4.8590/8665 previously. – Bernama

Source: https://www.thestar.com.my/business/business-news/2020/09/29/ringgit-rebounds-as-risk-on-mood-oil-price-improve