[ad_1]
KUALA LUMPUR: The ringgit extended yesterday’s gains to trade higher against the US dollar today, supported by improving oil prices, an analyst said.
At 9 a.m., the local note rose to 4.0530 / 0560 from Thursday’s close of 4.0600 / 0620.
Axi’s chief global market strategist Stephen Innes said the ringgit is benefiting from higher oil prices, as Malaysia is among the largest oil producers in Asia, with Brent crude above 50 dollars per barrel.
“That movement in oil should be equivalent to the ringgit trading at the 4.5 handles, against the dollar,” he told Bernama.
Brent crude was reported to hit $ 50 a barrel Thursday morning for the first time since oil prices slumped in early March, as hopes for a faster-than-previously thought launch of vaccines fueled bullish expectations of strengthening oil demand early next year.
At the time of writing, Brent crude oil was up 0.68 percent to $ 50.59 a barrel.
“With the launch of the vaccine, the ringgit will also benefit from more exports to the west. At the same time, Malaysia’s thriving travel industry should see a large increase in tourism activity once air routes are finally opened more. freely, “added Innes.
Meanwhile, the ringgit also traded mostly lower against other major currencies.
It fell slightly against the Singapore dollar to 3.0366 / 0400 from Thursday’s close of 3.0348 / 0368 and fell against the Japanese yen to 3.8967 / 9008 from 3.8863 / 8889.
The local currency rose against the British pound to 5.3917 / 3961 from 5.4063 / 4106 yesterday, but depreciated against the euro to 4.9224 / 9276 from 4.9142 / 9183 on Thursday. – Bernama
[ad_2]
