KUALA LUMPUR, July 7 ― The ringgit opened higher against the US dollar today supported by the rally in oil prices amid tight supply in the market and ahead of the Bank Negara Malaysia’s decision at its Monetary Policy Committee today.

As at 9.05am, the ringgit was traded at 4.2700/2780 against the greenback from yesterday’s 4.2750/2800.

Brent crude improved 0.09 per cent to trade at US$43.14 per barrel as at time of writing.

OANDA Asia Pacific senior market analyst Jeffrey Halley opined that BNM would almost certainly cut 25 basis points to 1.75 per cent.

"There is a decent chance though that they may cut 50 points to 1.50 per cent, given recent inflation data plunging into negative territory.

"The recovery of the ringgit in the past two-months may embolden their hand as well,” he said in a note today.

Meanwhile, the ringgit traded lower against other major currencies.

The local note declined against the Singapore dollar to 3.0702/0770 from 3.0698/0745 yesterday and marginally decreased against the yen to 3.9784/9870 from 3.9745/9803.

However, the ringgit marginally fell against the British pound to 5.3431/3535 from 5.34203500 and eased against the euro to 4.8362/8457 from 4.8273/8347. ― Bernama