KUALA LUMPUR, March 17 — The ringgit opened higher against the US dollar today, supported by improved global sentiment following developments in the oil market.
At 8 am, the local currency strengthened to 3.9195/9315 against the greenback from yesterday’s close of 3.9260/9310.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the US Dollar Index fell 0.65 per cent to 99.712, while Brent crude declined 2.84 per cent to US$100.21 per barrel.
“Measures by the International Energy Agency to release strategic petroleum reserves, along with calls by US President Donald Trump for other nations to help ensure the safe passage of vessels through the Strait of Hormuz, suggest oil supplies could improve in the near term,” he told Bernama.
Mohd Afzanizam said the improved outlook also lifted US equities overnight, with major indices such as the S&P 500 and Nasdaq rising more than one per cent.
He added that market participants will focus on the upcoming two day Federal Open Market Committee meeting starting tonight for fresh signals on the US economic outlook and the Federal Reserve’s quarterly projections.
“Yesterday, the ringgit closed 0.26 per cent higher against the greenback. However, market uncertainties remain elevated.
“As such, the US dollar ringgit pair is expected to trade around RM3.92 to RM3.94 today,” he said.
The ringgit traded mixed against a basket of major and ASEAN currencies.
It rose against the Japanese yen to 2.4629/4706 from 2.4639/4672 at yesterday’s close, but weakened against the British pound to 5.2176/2336 from 5.2008/2074 and slipped against the euro to 4.5066/5204 from 4.4945/5002.
The local currency was slightly lower against the Singapore dollar at 3.0659/0756 from 3.0650/0692 and eased against the Thai baht to 12.1062/1530 from 12.0644/0857.
However, the ringgit edged up against the Indonesian rupiah to 230.5/231.4 from 230.9/231.3 and strengthened against the Philippine peso to 6.54/6.57 from 6.55/6.56 previously.
