KUALA LUMPUR, July 15 ― The ringgit was higher at the opening, tracking the higher crude oil price currently trading at US$43 (RM183.34) per barrel, up by 0.23 per cent, ahead of the virtual joint ministerial monitoring committee (JMMC) of the Organisation of the Petroleum Exporting Countries (Opec) meeting later today to recommend levels for future supply cuts.
As at 9am, the local unit strengthened to 4.2630/2680 against the greenback from 4.2680/2720 recorded at yesterday’s close.
AxiCorp chief global market strategist Stephen Innes said despite the slightly higher domestic unit, overall the currency market would remain a bit defensive ahead of the Opec meeting.
“I don't think the Opec meeting will hurt the oil market, so the foreign exchange FX market is not very vexed by the Opec JMMC meeting,” he told Bernama.
Innes added that while the commodity market is not liking the California lockdown, but to a degree, Asia risk remains somewhat isolated in the contexts of the bullish reopening impulse from China.
“Thankfully the ringgit has China to lean on, but I'm not looking for any explosive moves in the currency market this week as a trader will take on a defensive posture not wanting to fight the US dollar haven impulse.
“But again, it looks like another week where external factors will thwart the ringgit bullish ambitions, but I look for Asia foreign exchange and the ringgit to remain in a holding pattern while taking a cue from the renminbi which is the best,” he said.
Meanwhile, the ringgit was traded mostly lower at the opening except against the yen, where it rose to 3.9730/9780 from 3.9758/9806.
Against the Singapore dollar, the ringgit was traded lower at 3.0645/0696 from 3.0628/0661.
Vis-a-vis the British pound, the domestic unit decreased to 5.3599/3679 from 5.3431/3485 and depreciated to 4.8645/8719 from 4.8484/8534 when compared with the euro. ― Bernama