KUALA LUMPUR, June 3 — The ringgit continued to rally for the fourth consecutive day today on the back of a broadly weaker US dollar and surging oil prices, with Brent crude hitting above US$40 per barrel ahead of the Opec+ meeting.
At the close, the ringgit was quoted at 4.2590/2660 against the greenback from 4.2750/2800 at the close yesterday.
AxiCorp global chief market strategist Stephen Innes told Bernama that the improving global risk sentiment against the backdrop of higher oil prices was having a very favourable effect on the ringgit.
“The impact of higher oil prices is leaving a profound effect on high-yielding and commodity-producing currencies.
“Although the ringgit is not considered a high yielder per se, the Malaysian Government Securities 10-year note is still near three per cent and quite attractive from a hunt for yield perspective even more so against the backdrop of a weakening US dollar,” he said.
Global benchmark Brent hit a three-month high today on reports suggesting that Opec+ is moving towards an agreement to extend production cuts.
He pointed out that Brent has now doubled in price from its lows in April.
The Opec and allies are expected to meet tomorrow.
The ringgit was traded higher against a basket of benchmark currencies.
It rose against the Singapore dollar to 3.0480/0537 from 3.0503/0547 and was higher against the Japanese yen at 3.9149/9224 from 3.9686/9736.
The local note advanced against the British pound to 5.3638/3743 from 5.3715/3787 and improved against the euro to 4.7769/7856 from 4.7790/7859 at the close yesterday. — Bernama
