Ringgit opens higher against US dollar as easing oil‑supply concerns lift sentiment
KUALA LUMPUR, Sept 18 — The ringgit opened higher against the US dollar and a basket of major currencies today, supported by improved market sentiment as easing West Asia crude oil supply concerns lifted risk appetite.
At 8am, the local note increased to 4.0955/1015 against the greenback from yesterday’s close of 4.0965/1010.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said market sentiment was lifted after Saudi Arabia reportedly began restoring its damaged East-West pipeline, while tanker movements through the Strait of Hormuz continued, easing immediate concerns over supply.
“As a result, Brent crude oil prices fell 0.95 per cent to US$104.82 per barrel, while US Treasury yields declined, with the two- and 10-year notes falling seven basis points each to 4.67 per cent and 4.94 per cent, respectively.
“However, attention has now shifted to the Bank of Japan’s (BOJ) monetary policy decision later today, with consensus expecting a 25-basis-point increase in its policy rate to 1.25 per cent,” he told Bernama.
He said the market would be closely watching the BOJ’s economic assessment and policy tone, as a more hawkish stance could trigger further unwinding of yen carry trades and heighten volatility in the foreign exchange market.
Hence, Mohd Afzanizam expects the ringgit to stay in a narrow range today as traders will be observing this critical event.
At the opening, the ringgit was higher against a basket of major currencies.
The local note gained against the euro to 4.7000/7069 from yesterday’s close of 4.7003/7055, rose against the yen to 2.6228/6268 from 2.6305/6336, and advanced vis-à-vis the British pound to 5.4704/4784 from 5.4877/4937 previously.
The ringgit traded mixed against its Asean peers.
The local currency appreciated against the Singapore dollar to 3.2096/2146 from 3.2099/2137, but dipped against the Thai baht to 12.3043/3279 from 12.2734/2917.
The ringgit remained unchanged vis-à-vis the Philippine peso at 6.53/6.54 and against the Indonesian rupiah at 230.7/231.1 yesterday.
