Ringgit higher against US dollar on rising oil prices

A Malaysia Ringgit note is seen in this illustration photo June 1, 2017. — Reuters pic
A Malaysia Ringgit note is seen in this illustration photo June 1, 2017. — Reuters pic

KUALA LUMPUR, April 2 — The ringgit traded higher against the US dollar today, lifted by rising oil prices and on reports saying that China plans to buy oil for its state reserves, an analyst said.

At the 6pm closing, the ringgit was quoted at 4.3480/3550 against the US dollar compared with Wednesday’s close of 4.3500/3650.

AxiCorp global chief market strategist Stephen Innes said crude futures moved higher after the United States President Donald Trump expressed optimism that the price war between Saudi Arabia and Russia could be resolved.

“China is also planning to announce the fourth batch of strategic reserve sites,” Innes said in a note today.

On the local front, concerns on the extension of the Movement Control Order could drive investors to seek shelter in the safe-haven greenback.

Innes also said emerging markets are experiencing steep outflows amid growing signs of extension of the MCO.

Meanwhile, the ringgit was traded mostly lower against a basket of major currencies.

It marginally improved vis-a-vis the euro to 4.7537/7631 compared to 4.7554/7731 at Wednesday’s close, but fell against the Singapore dollar at 3.0395/0457 from 3.0341/0454 yesterday.

The local unit depreciated against the British pound to 5.4180/4285 from 5.3762/3964 and declined versus the Japanese yen to 4.0518/0591 from 4.0416/0567 yesterday. — Bernama

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