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KUALA LUMPUR – The ringgit opened higher against the US dollar today on buying interest despite falling crude oil prices, said an analyst.
At 9am, the local currency traded at 4.1820/1860 versus the greenback from yesterday’s close of 4.1835/1850.
At press time, Brent crude oil stood at US$92.65 (RM387.83) per barrel, a decrease of 0.04%.
Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said although crude oil has been hovering above US$90 per barrel, it supports the ringgit at the moment.
“Higher crude oil prices would help improve fiscal space for the Malaysian economy that could then underpin growth.
“In that sense, the case for a stronger ringgit is quite visible,” he said.
Afzanizam said the Consumer Price Index (CPI) is expected to be sustained at more than 7% for January.
“So the rate hike in the US is almost a done deal and the next question is the quantum for the hike.
“On one hand, there are forces that would lead the appreciation of the ringgit, while on the other hand, there is a factor that will lift the US dollar,” he said.
He said the ringgit should therefore stay around RM4.18 against the greenback in the immediate term.
Investors would also weigh Malaysia’s final quarter gross domestic product on Friday, he said, adding that the “number could come in positive after recording negative print in the prior quarter following the reopening of the economy in October”.
Meanwhile, the ringgit was traded mostly lower against a basket of other major currencies.
It slipped against the Singapore dollar to 3.1125/1157 from yesterday’s close of 3.1102/1115, fell against the British pound to 5.6603/6658 from 5.6536/6556, and depreciated versus the euro to 4.7850/7896 compared with 4.7780/7797 previously.
The ringgit, however, appreciated against the Japanese yen to 3.6274/6312 from 3.6369/6385.
At 10.30am today, there were 242 gainers, 362 losers and 357 counters traded unchanged on the Bursa Malaysia.
The FBM-KLCI was at 1,530.89 up 0.24 of a point, the FBMACE was at 6,205.24 down 43.04 points, and the FBMEmas was at 11,016.91 down 1.95 points.
Turnover was at 785.608 million shares valued at RM452.583 million. – Bernama, February 8, 2022