Easing global oil prices and diplomatic developments in West Asia lifted market sentiment and supported the local note.
KUALA LUMPUR: The ringgit opened slightly higher against the US dollar and a basket of major currencies on Tuesday, supported by improved market sentiment amid easing global oil prices and geopolitical developments.
At 8 am, the ringgit edged up to 4.0750/0805 against the greenback from Monday’s close of 4.0755/0800.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said Brent crude oil prices fell 3.4 per cent to US$100.34 per barrel, following satellite data showing that Saudi Arabia had shifted its oil exports via the Strait of Hormuz after the East-West pipeline shut down.
It was reported that Saudi Arabia has increased its crude oil exports through the Strait of Hormuz to about 2.9 million barrels per day, from around 700,000 barrels per day in August, following the disruption to the East-West pipeline.
“At the same time, the willingness of US President Donald Trump to meet the Iranian President during the United Nations General Assembly this week also suggests some positive development with respect to the war in West Asia,” he told Bernama.
Mohd Afzanizam added that, in light of the development, the ringgit could gradually show an appreciation trend today.
At the opening, the ringgit traded higher against a basket of major currencies.
It gained against the euro to 4.6716/6779 from 4.6783/6834 at Monday’s close and advanced vis-à-vis the British pound to 5.4475/4548 from 5.4542/4603 and rose versus the Japanese yen to 2.5893/5931 from 2.5916/5946 previously.
The local note traded mixed against its ASEAN peers.
It slightly increased vis-à-vis the Singapore dollar to 3.1931/1976 from 3.1950/1987 but depreciated against the Thai baht to 12.2593/2822 from 12.2450/2637 previously.
The local currency was little changed against the Indonesian rupiah to 228.3/228.7 from 228.3/228.6 and remained unchanged against the Philippine peso at 6.49/6.50 at Monday’s close.
