KUALA LUMPUR: The ringgit was higher against the US dollar in early trading today on improving market sentiment towards the local note due to the higher global oil price.
At 9.06am, the local unit was traded at 4.1380/1430 against the greenback from 4.1400/1450 at yesterday’s close.
A dealer said buying demand for the ringgit increased as oil futures edged up, with Brent crude futures settled up 35 cents to US$71.97 (RM299) a barrel and US West Texas Intermediate (WTI) crude futures rose 24 cents to US$64.00 (RM266) a barrel.
“This is perceived to be good for the country’s oil and gas revenue.
“Furthermore, the ringgit was also higher due to bargain hunting activities, after it closed at a nearly three-month low against the US dollar on Wednesday following the possible downgrade of Malaysian bonds by the global index provider, FTSE Russell,” he said.
However, he said some investors were confident that the government would not let the potential downgrade by FTSE Russell and the Norwegian sovereign wealth fund’s pullout from Malaysia’s government bonds affect the country’s economic growth.
Meanwhile, the ringgit also traded higher against other major currencies.
It rose against the Singapore dollar to 3.0525/0567 from 3.0535/0584 at the close yesterday and was higher against the Japanese yen at 3.6963/7011 from 3.6991/6039.
The ringgit also appreciated against the British pound to 5.3761/3830 from 5.3853/3935 and improved against the euro at 4.6507/6567 from 4.6579/6640 previously. — Bernama
