KUALA LUMPUR: The ringgit settled higher versus the US dollar today, rebounding from yesterday’s losses on renewed demand and in line with the steadier in crude oil prices, an analyst said.

At 6 pm, the local currency improved 130 basis points (bps) to 4.0350/0390 against the greenback from Tuesday’s close of 4.0480/0510.

Axi chief global market strategist Stephen Innes said with the vaccines on their way, it would brighten the prospects for the global economy whereby emerging markets and their respective currencies would be the huge beneficiaries into 2021.

“Today oil prices remain supported on vaccine optimism, which boosted market sentiment for emerging currencies including the local currency,“ he told Bernama.

At the time of writing, the benchmark Brent crude rose 0.8 per cent to US$51.50 per barrel.

Meanwhile, the ringgit was traded mixed other major currencies.

It improved against the Singapore dollar to 3.0441/0481 from 3.0484/0509 on Wednesday and appreciated versus the euro to 4.9497/9559 from 4.9584/9625 yesterday.

The local note, however, fell versus the Japanese yen to 3.9084/9126 from 3.9039/9080 and dropped against the British pound to 5.4775/4846 from 5.4527/4587 previously. -Bernama