KUALA LUMPUR, June 18 — The ringgit closed marginally higher against the US dollar today, supported by the better oil prices, analysts said.
At 6pm, the ringgit was quoted at 4.2750/2800 from 4.2780/2830 at yesterday’s close.
Oil benchmark Brent crude was trading 0.66 per cent firmer at US$40.98 per barrel as at time of writing.
It was reported that Brent had erased its losses in early European trading ahead of the Organisation of the Petroleum Exporting Countries members and allies (Opec+) meeting, against the backdrop of demand concerns over new coronavirus cases in China and elsewhere.
“The market continues to balance re-opening optimism with economic uncertainties from a secondary outbreak of the virus,” said AxiCorp chief global market strategist Stephen Innes.
The Opec+ is expected to hold an online meeting later today to discuss the way forward on its agreement to cut oil production by 9.7 million barrels per day in May and June 2020.
Opec+’s compliance stood at 87 per cent in May.
Reports also stated that the production cut had a modest positive effect on oil prices so far, as the amount of crude oil in storage around the world are still rather excessive.
As Malaysia is a net exporter of crude oil and petroleum products, the crude oil price movements exert a significant influence on the strength of the ringgit.
Meanwhile, the ringgit was traded mostly lower against benchmark currencies.
It fell to 3.0713/0760 from 3.0664/0709 against the Singapore dollar and dropped to 3.9942/9996 from 3.9844/9894 versus the Japanese yen at yesterday’s close.
The local note however rose to 5.3416/3491 from 5.3616/3692 vis-a-vis the British pound, but declined to 4.8089/8163 against the Euro from 4.8033/8107 previously. — Bernama
