Ringgit opens higher against US dollar on firmer oil prices

KUALA LUMPUR: The ringgit opened higher against the US dollar this morning, supported by the firmer Brent crude oil prices which surpassed US$80 per barrel, said an analyst.

At 8 am, the local note rose to 4.2590/2865 versus the greenback, from Monday's close of 4.2810/2880.

However, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid expects the ringgit to remain soft as the tension in the Middle East has yet to subside.

At the same time, the higher United States (US) Treasury bond yields are sending mixed signals for the local currency, he said.

Speaking to Bernama, he noted that the military conflict in the Middle East would trigger a risk-off mode. On the other hand, the strong US jobs data indicates that the US economy remains resilient, which necessitates a milder approach to monetary easing.

"The US dollar seems to be the clear winner in the near term. As such, the ringgit could stay soft as markets remain jittery over the US rate cut prospect and how the Middle East tension would unfold going forward," he said.

Meanwhile, the ringgit was also traded higher against other major currencies.

It gained versus the euro to 4.6738/7040 from 4.6920/6996 at Monday's close, increased against the Japanese yen to 2.8750/8937 from 2.8857/8909 yesterday, and edged up vis-a-vis the British pound to 5.5725/6085 from 5.5953/6044 previously.

The local currency also performed better versus ASEAN currencies.

It appreciated vis-a-vis the Singapore dollar to 3.2661/2874 from 3.2832/2888 at the previous close and strengthened against the Indonesian rupiah to 271.4/273.3 from 272.8/273.4 yesterday.

The ringgit also improved versus the Thai baht to 12.7153/8108 from 12.7948/8218 at Monday's close and rose against the Philippines' peso to 7.50/7.55 from 7.54/7.55 previously.

-- BERNAMA

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