Ringgit strengthens against US dollar in early trade

Stabilising oil prices has led to renewed buying interest in the Malaysian ringgit and a higher opening against the US dollar. ― Picture by Sayuti Zainudin
Stabilising oil prices has led to renewed buying interest in the Malaysian ringgit and a higher opening against the US dollar. ― Picture by Sayuti Zainudin

KUALA LUMPUR, May 27 — The ringgit strengthened against the US dollar at the opening today on renewed buying interest amid stabilising oil prices, said an analyst.

At 9.02am today, the local note was quoted at 4.3450/3600 compared with Friday’s close of 4.3610/3690.

The market was closed on Monday and yesterday for the Hari Raya Aidilfitri celebration.

AxiCorp global chief market strategist Stephen Innes said the ringgit is in the midst of a tug of war between stabilising oil prices and heightened United States (US)-China trade tension.

“The latter will be a significant concern, going forward, since the US President Donald Trump has made it clear that his election campaign will be laced with anti-China rhetoric,” he said in a note today.

The US administration alleged that China was being less than transparent in handling the coronavirus crisis, added Innes.

Meanwhile, the ringgit was traded mixed against a basket of benchmark currencies.

The local currency rose against the Singapore dollar to 3.0657/0771 from Friday's close of 3.0638/0698 and jumped against the Japanese yen to 4.0389/0539 from 4.0567/0653 previously.

However, it had eased against the euro to 4.7665/7842 from 4.7562/7667 earlier and depreciated against the British pound to 5.3535/3733 from 5.3078/3118 previously. — Bernama

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