Ringgit opens higher against US Dollar, major currencies on improved sentiment

KUALA LUMPUR: The Malaysian ringgit opened slightly higher on Tuesday against the US dollar and a basket of major currencies, buoyed by improved market sentiment due to easing global oil prices and geopolitical developments. The ringgit was at 4.0750/0805 against the greenback, up from Monday's close of 4.0755/0800. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid explained that the drop in Brent crude oil prices by 3.4% to US$100.34 per barrel, following Saudi Arabia's decision to resume oil exports through the Strait of Hormuz, contributed to the positive trend.

Saudi Arabia's crude oil exports through the Strait of Hormuz increased to about 2.9 million barrels per day, up from around 700,000 barrels per day in August. US President Donald Trump's willingness to meet with Iranian President during the United Nations General Assembly also reflected potential positive developments in the West Asia conflict.

The ringgit showed gains against the euro, British pound, and Japanese yen during the opening. However, the local currency had mixed performances against its ASEAN counterparts, with slight increases against the Singapore dollar and depreciation against the Thai baht. The ringgit remained stable against the Indonesian rupiah and unchanged against the Philippine peso.