Bullish oil prices push ringgit higher at close

As at 6pm today, the local note was quoted at 4.2830/2890 compared with 4.2840/2880 yesterday. — Reuters pic
As at 6pm today, the local note was quoted at 4.2830/2890 compared with 4.2840/2880 yesterday. — Reuters pic

KUALA LUMPUR, July 2 — The ringgit ended slightly higher today, backed by the bullish overnight oil prices.

As at 6pm today, the local note was quoted at 4.2830/2890 compared with 4.2840/2880 yesterday.  

An analyst said the increase in overnight oil prices had boosted the demand for the ringgit marginally as investors were still analysing the key takes from the just-released minutes of the US Federal Reserve’s June meeting.

As at 6pm, benchmark Brent crude was up 0.98 per cent to US$42.44 (RM182) per barrel.

Among the key takes from the Federal Open Market Committee June 9-10 meeting minutes were the data for the second quarter would likely show the largest decline in economic activity in post-World War II history due to the Covid-19 pandemic.

However, she added that with the fear of Covid-19 second wave still on the horizon, investors were staying on the sidelines for now until further market direction was determined.

“Malaysia has very much successfully contained the virus spread for now, but there are concerns on whether a second wave would come once the borders are re-opened,” she said.

Malaysia only recorded three new cases today with 62 newly recovered cases.

Meanwhile, the ringgit was traded lower against other benchmark currencies.

The local note slipped against the British pound to 5.3597/3690 from 5.3100/3167 yesterday, declined versus the Singapore dollar to 3.0751/0799 from 3.0718/0756 and was flat against the euro at 4.8007/8068.

The ringgit also fell vis-a-vis the Japanese yen to 3.9857/9924 from 3.9833/9881 yesterday. — Bernama

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