Ringgit higher against US dollar in early trade

03 Dec 2019 / 11:18 H.

KUALA LUMPUR: The ringgit was higher against the US dollar in early trade today on better demand for the local note due to higher global oil price and weak US manufacturing data.

At 9.05 am, the ringgit was traded at 4.1720/1750 against the greenback from 4.1780/1820 yesterday.

A dealer said the United States’ (US) Institute for Supply Management announced on Monday that its national factory activity index declined by 0.2 point to 48.1 in November, marking the fourth consecutive month of shrinking manufacturing activity.

He said the unexpected decline has put a big dent on optimism that the US economy has stabilised, fueled by a recent run of upbeat reports.

Meanwhile, the possibility of a production cut by the Organisation of the Petroleum Exporting Countries (OPEC) and its allies at its meeting this week has lifted global oil price, which in turn raised positive market sentiments towards Malaysia.

“Market players said higher oil price will have a positive impact on the country’s oil and gas revenue,” he added.

Brent futures rose 0.7 per cent to US$60.92 a barrel, while the US West Texas Intermediate (WTI) crude gained 1.4 per cent to US$55.96.

The ringgit, however, was traded lower against a basket of major currencies.

The local currency declined against the Singapore dollar at 3.0531/0557 from 3.0521/0561 on Monday and was lower against the yen at 3.8226/8264 from 3.8107/8153 previously.

It depreciated against the British pound to 5.3956/3999 from 5.3925/4002 yesterday and decreased against the euro to 4.6201/6238 from 4.6025/6073. -Bernama

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