Ringgit rises against US dollar, major currencies on improved sentiment

KUALA LUMPUR: At 8 a.m. on Tuesday, the Malaysian ringgit opened marginally higher against the US dollar and a group of significant currencies, propelled by a more favorable market mood due to stabilizing global oil prices and political developments. The ringgit ascended to 4.0750/4.0805 versus the US dollar, from Monday's closing rate of 4.0755/4.0800.

According to Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid, Brent crude oil prices experienced a 3.4% drop, reaching US$100.34 per barrel, following reports that Saudi Arabia had resumed shipping oil through the Strait of Hormuz following the East-West pipeline's suspension. The economist pointed out that Saudi Arabia's crude oil exports had risen to approximately 2.9 million barrels per day, up from around 700,000 barrels per day in August.

Afzanizam also noted that US President Donald Trump's willingness to meet with Iranian President during the United Nations General Assembly this week indicated positive progress in the West Asia conflict. Consequently, he suggested that the ringgit might gradually appreciate throughout the day. At the market opening, the ringgit traded at a premium against a basket of major currencies.

It appreciated versus the euro to 4.6716/4.6779 from 4.6783/4.6834, rose relative to the British pound to 5.4475/5.4548, and increased against the Japanese yen to 2.5893/2.5931. However, the local currency was mixed against its ASEAN counterparts. It marginally increased against the Singapore dollar to 3.1931/3.1976 and declined against the Thai baht to 12.2593/12.2822.

The ringgit remained stable against the Indonesian rupiah at 228.3/228.7 and unchanged against the Philippine peso at 6.49/6.50.