KUALA LUMPUR, June 14 — The ringgit closed flat against the US dollar today on mixed market sentiments amid better oil prices and ahead of a key US Federal Reserve meeting later this week.
At 6pm, the local unit remained at 4.1130/1150 against the greenback at Friday’s closing last week.
An analyst said despite the extension of the third movement control order 3.0 (MCO 3.0) in Malaysia, the local currency held steady as oil prices stood at near multi-year highs today, underpinned by an improved outlook for demand as increased Covid-19 vaccinations help to lift travel curbs.
According to news reports, vehicle traffic in North America and Europe were returning to pre-pandemic levels and more planes were flying as lockdowns and other restrictions were being eased.
As at the time of writing, benchmark Brent crude traded 0.89 per cent higher at US$73.33 (RM302) per barrel.
However, the analyst said further gains for the ringgit were limited as the greenback also improved. Investors were curious about the economic recovery and monetary policy in the US and hoped the upcoming Federal Reserve meeting scheduled tomorrow and Wednesday would provide more clues.
Besides, some markets in Taiwan, China, Hong Kong and Australia were closed giving more room for the US dollar to appreciate.
At the close, the local note was higher against a basket of major currencies.
It rose to 3.0997/1014 against the Singapore dollar from 3.1034/1059 last Friday and improved to 3.7500/7522 against the yen from 3.7500/7531 previously.
Vis-a-vis the euro, the ringgit appreciated to 4.9817/9841 from 4.9908/9945 while against the pound, it was firmer at 5.7952/7980 from 5.8094/8140 previously. — Bernama