Ringgit higher on surging 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 9.10am, the local unit traded at 4.2235/2265 against the greenback from 4.2300/2330 yesterday.

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 yesterday but gained against the euro to 4.9039/9087 from 4.9072/9124,

The Malay Mail via Bernama

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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