KUALA LUMPUR, Feb 10 ― The ringgit strengthened against the US dollar in early session today on continued buying interest, supported by higher oil prices, said an analyst.
At 9am, the local note traded marginally higher at 4.0450/0459 against the greenback from yesterday's close of 4.0460/0500.
Axi chief global market strategist Stephen Innes said the ringgit traded well in line with other oil-exporting countries peer currencies and got a double whammy boost from the stronger yuan on robust credit demand expectations in China for January.
“Higher oil prices of US$60 (RM242.86) per barrel would benefit Malaysia’s fiscal position compared with the government's Budget 2021 assumption of US$42 per barrel for 2021 and US$45-55 per barrel for 2022-2023.
“It could also provide the government room to pump-prime and fund some of the large infrastructure projects,” he told Bernama.
At the time of writing, Brent crude gained 0.11 per cent to trade at US$61.16 per barrel.
Meanwhile, the local currency traded mostly lower against other major currencies today.
It eased against the Singapore dollar to 3.0491/0534 from yesterday's 3.0488/0520 and weakened vis-a-vis the euro to 4.8997/9074 from 4.8993/8046 and depreciated against the British pound to 5.5865/5943 from 5.5754/5817.
The ringgit, however, appreciated against the yen to 3.8664/8715 from 3.8688/8734 previously. ― Bernama