KUALA LUMPUR, July 6 — The ringgit ended higher against the US dollar today on the back of higher oil prices amid tight supply in the market.
As at 6pm, the ringgit was quoted at 4.2750/2800 against the greenback from last Friday’s 4.2840/2900.
Brent crude jumped 1.40 per cent to US$43.40 (RM186) per barrel.
Market participants will also await Bank Negara Malaysia’s decision at its Monetary Policy Committee meeting tomorrow.
However, the market has mixed views over BNM’s possible decision on the overnight policy rate (OPR).
“I do not expect BNM to cut OPR tomorrow but will rather wait to gauge this month’s high-frequency data such as the Industrial Production Index by the Department of Statistics, while deferring to the second quarter’s gross domestic product, which is set to be released in August, for a better view,” AxiCorp chief global market strategist Stephen Innes told Bernama.
Earlier today, Kenanga Research said the ringgit could be pressured this week on the back of risk-off mode as global Covid-19 cases continued to rise, while the market is expecting BNM to slash its OPR on July 7.
“Likewise, the house expects BNM to cut OPR by 25 basis points to reinforce fiscal measures to further support the economic recovery,” it added.
Meanwhile, the ringgit was traded mixed against other benchmark currencies.
The local note rose against the Singapore dollar to 3.0698/0745 from 3.0718/0766 last Friday and strengthened against the yen to 3.9745/9803 from 3.9855/9918.
However, the ringgit fell against the British pound to 5.34203500 from 5.3332/3423 and eased against the euro to 4.8273/8347 from 4.8101/8185. — Bernama