Ringgit up slightly against US dollar at opening

Ringgit up slightly against US dollar at opening

KUALA LUMPUR,. The ringgit opened slightly higher against the US dollar today on better demand for the local note as news on higher global oil prices and the US dollar’s gloomy outlook helped lift sentiment towards the ringgit, said a dealer.

At 9am, the local unit improved to 4.1420/1470 against the greenback from 4.1430/1460 yesterday.

OANDA head of trading Asia-Pacific Stephen Innes said the ringgit also found a modicum of support from July trade figures that beat all expectations as higher oil prices remain the ringgit’s lifeline in these turbulent times, significantly improving Malaysia’s terms of trade.

The price of benchmark Brent crude oil now stands at US$76.61 (RM317.62) per barrel.

“Besides, the local unit is getting a fillip from the bounce in other emerging market (EM) currencies with the weakest links in the EM currency chain having a positive overnight session,” he told Bernama.

Innes said the outlook, however, remains incredibly clouded and with the market’s proclivity to buy US dollar on dips would continue to keep sentiment negative.

“What remains entirely interesting about the ringgit is the full range of year-end estimates which does suggest trading the ringgit will become incredibly active once the US-China trade news leaves the headlines,” he added.

Meanwhile, the local note traded mixed against other major currencies.

It depreciated against the Singapore dollar to 3.0124/0167 from 3.0116/0144 on Thursday and eased against the yen to 3.7481/7536 from 3.7217/7254.

The local note improved against the euro to 4.8130/8201 from 4.8138/8189 and rose against the British pound to 5.3531/3604 from 5.3569/3624. — Bernama