Ringgit ends higher on firmer oil prices

KUALA LUMPUR: The ringgit remained constructive to close higher against the US dollar today, backed by the firmer oil prices coupled with the anticipated Bank Negara Malaysia's (BNM) Overnight Policy Rate (OPR) announcement on Thursday.
At 6pm, the local note finished at 3.9330/9370 against the greenback from 3.9360/9400 on Friday.
OANDA Head of Trading for Asia Pacific, Stephen Innes said oil prices were the primary focus for traders today following news of the drop-off in the US Shale oil drilling rigs on Friday and the Organisation of the Petroleum Exporting Countries (OPEC) cooperation on cutting production beyond 2018.
"This OPEC shift is an unexpected bullish signal for the ringgit as oil prices could remain high much longer than expected.
"The higher oil prices could see the ringgit rally to 3.92 against the US dollar," he told Bernama.
Meanwhile, market rumours were rite that the coming BNM's Monetary Policy Committee meeting may raise the OPR by 25 basis points (bps) to 3.25% after the hawkish shift in the last meeting.
"We expect the ringgit-US dollar to trade below 3.90 if a rate increase were to materialise.
"But the OPEC compliance beyond 2018 could be a game changer for oil prices and take the ringgit positively in tow," said Innes.
The ringgit was also traded higher against a basket of major currencies.
The local note strengthened against the Singapore dollar to 2.9809/9848 from Friday's 2.9820/9869.
It rose against the yen to 3.5522/5565 from Friday's 3.5572/5617 and up against the euro to 4.8179/8232 from 4.8322/8387.
The ringgit gained against the British pound to 5.4653/4724 from 5.4742/4801 on Friday. — Bernama