KUALA LUMPUR, July 13 — The ringgit ended higher against the US dollar today as the greenback retreated on concerns of the surge in Covid-19 cases in the US.
The return of risk-on appetite to emerging markets had also helped to lift the ringgit higher as Bursa Malaysia equities ended at a six-month high, breaching the 1,600-point level, said an analyst.
As at 6pm, the local unit rose to 4.2630/2680 against the greenback from last Friday’s close of 4.2650/2690.
Kenanga Research in a note earlier today said the ringgit appreciated against the greenback on further recovery in global oil prices and as investors viewed Bank Negara Malaysia’s 25-basis points rate cut last week favourably.
“The strength (of the local unit) was partially slashed by worries over a record spike in daily Covid-19 cases in the US on Friday,” it said.
Meanwhile, FXTM market analyst Han Tan said the ringgit counted itself among the Asian currencies that kicked off the week with an advance against the US dollar.
“With Brent oil treading water around the US$40 (RM170) per barrel level at present, the commodity is unlikely to exert significant pressure on the ringgit for the time being, potentially until there’s a dramatic shift in the global supply-demand equation,” he told Bernama.
He said the market was awaiting the key decision from the Organisation of the Petroleum Exporting Countries and allies (Opec+) on July 15 over its supply-cut programme.
“Should Opec+ decide to keep output lower by 9.6 million barrels per day into August, as opposed to easing up on the production cuts beginning next month as scheduled, that could help Brent climb further.
“A further lift for oil price could be the enabler for more ringgit gains,” he added.
Meanwhile, the ringgit was traded mixed against other benchmark currencies.
The local unit rose against the British pound to 5.3731/3815 from last Friday’s 5.3773/3845 and appreciated against the yen to 3.9800/9858 from 3.9931/9979 previously.
The ringgit fell against the Singapore dollar to 3.0660/0707 from 3.0648/0684 and weakened against the euro to 4.8253/8318 from 4.8152/8210 previously. — Bernama
