Ringgit gains against US dollar as easing oil prices lift market sentiment

KUALA LUMPUR, Sept 22 — The Malaysian ringgit started the day slightly stronger against the US dollar and a selection of major currencies on Tuesday, bolstered by a positive outlook due to falling global oil prices and geopolitical developments. By 8am, the ringgit climbed to 4.0750/0805 against the US dollar, up from Monday's closing rate of 4.0755/0800.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid attributed the rise in part to a drop in Brent crude oil prices, which fell 3.4 percent to US$100.34 (RM409) per barrel following reports that Saudi Arabia had resumed exporting oil through the Strait of Hormuz. The Saudi Arabian crude oil output surged to approximately 2.9 million barrels per day, compared to around 700,000 barrels per day in August, following the reinstatement of the East-West pipeline.

Afzanizam also noted that President Donald Trump's willingness to engage in talks with Iranian President at the United Nations General Assembly this week had brought a degree of optimism regarding the situation in the West Asia region. With these developments, the ringgit could experience a gradual appreciation trend throughout the day.

Initially, the ringgit was found to be above the US dollar and other major currencies, with gains against the euro and the British pound, as well as against the Japanese yen. However, the local currency experienced mixed performance against its ASEAN counterparts, slightly increasing against the Singapore dollar but depreciating against the Thai baht.

The ringgit held steady against the Indonesian rupiah and remained unchanged against the Philippine peso.