KUALA LUMPUR: The ringgit opened higher against the US dollar today with the surging bond and equity inflows acting as the primary catalysts which accelerated the demand for the local note, a dealer said.
At 9 am, the local unit was traded 130 basis points higher at 4.0970/1000 against the greenback from Wednesday’s close of 4.1100/1130.
OANDA Head of Trading Asia-Pacific, Stephen Innes, told Bernama the ringgit was also supported by the bounce in macro economics environment amid a weaker US dollar which would continue to aid the local note in the short term.
Innes said the subdued greenback was apparent after the release of Federal Open Market Committee minutes yesterday.
“Adding to the positive ringgit narrative, was also the crude oil prices, as the Organisation of the Petroleum Exporting Countries meeting on Nov 30, 2017 in Vienna, has prompted gains in the midst of an oil leak in the Keystone pipeline as well as a decline in US crude inventories, as indicated by the US Energy Information Administration report,” he said.
The benchmark Brent crude was trading at US$62.87 (US$1 = RM4.09) per barrel at today’s opening.
Meanwhile, on foreign exchange, the ringgit was traded lower against a basket of major currencies.
The ringgit depreciated against the Singapore dollar to 3.0416/0447 from 3.0393/0417 on Wednesday and decreased against the yen to 3.6863/6900 from 3.6667/6697 yesterday.
The local unit declined versus the euro to 4.8410/8450 from 4.8317/8357 yesterday and eased against the British pound to 5.4564/4620 from Wednesday’s 5.4453/4505. — Bernama
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