KUALA LUMPUR, March 17 — The ringgit opened higher against the US dollar today, buoyed by improved global sentiment as market participants reacted positively to developments in the oil market.
At 8am, the local currency strengthened to 3.9195/9315 against the greenback, from Monday’s close of 3.9260/9310.
Bank Muamalat Malaysia Bhd Chief Economist Mohd Afzanizam Abdul Rashid said the US Dollar Index fell 0.65 per cent to 99.712, while Brent crude declined 2.84 per cent to US$100.21 per barrel.
“Measures by the International Energy Agency to withdraw from strategic petroleum reserves, along with calls by US President Donald Trump for other nations to assist in ensuring the safe passage of vessels through the Strait of Hormuz, give the impression that oil supplies should improve in the immediate term,” he told Bernama.
Mohd Afzanizam added that the improved outlook also lifted US equities overnight, with major indices such as the S&P 500 and Nasdaq rising more than one per cent.
On other developments, he said market participants will focus on the upcoming two-day Federal Open Market Committee meeting, beginning tonight, for fresh guidance on the US economic outlook and the Federal Reserve’s quarterly projections.
“Yesterday, the ringgit closed 0.26 per cent higher against the greenback. Nonetheless, market uncertainties remain heightened.
“As such, expect the US dollar-ringgit pair to trade around RM3.92 to RM3.94 today,” he said.
The local currency, however, traded mixed against a basket of major currencies and most Asean currencies.
The ringgit rose against the Japanese yen to 2.4629/4706 from 2.4639/4672 at Monday’s close, but depreciated versus the British pound to 5.2176/2336 from 5.2008/2074, and weakened against the euro to 4.5066/5204 from 4.4945/5002.
It was slightly lower against the Singapore dollar at 3.0659/0756 from 3.0650/0692 and retreated versus the Thai baht to 12.1062/1530 from 12.0644/0857.
The ringgit edged up against the Indonesian rupiah to 230.5/231.4 from 230.9/231.3 and advanced versus the Philippine peso to 6.54/6.57 from 6.55/6.56 previously. — Bernama
