Kuala lumpur: The ringgit opened higher against the US dollar today, buoyed by improved global sentiment as market participants reacted positively to developments in the oil market. At 8 am, the local currency strengthened to 3.9195/9315 against the greenback, from Monday's close of 3.9260/9310.
According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd Chief Economist Mohd Afzanizam Abdul Rashid noted that the US Dollar Index fell 0.65 per cent to 99.712, while Brent crude declined 2.84 per cent to US$100.21 per barrel. He explained that measures by the International Energy Agency to withdraw from strategic petroleum reserves, along with calls by US President Donald Trump for other nations to assist in ensuring the safe passage of vessels through the Strait of Hormuz, have contributed to an improved outlook for oil supplies in the immediate term.
Mohd Afzanizam further highlighted that the positive developments in the oil market also lifted US equities overnight, with major indices such as the S and P 500 and Nasdaq rising more than one per cent. He mentioned that market participants are now focusing on the upcoming two-day Federal Open Market Committee meeting, starting tonight, for fresh guidance on the US economic outlook and the Federal Reserve's quarterly projections.
The ringgit had closed 0.26 per cent higher against the greenback yesterday. Nonetheless, Mohd Afzanizam cautioned that market uncertainties remain heightened, and he expects the US dollar-ringgit pair to trade around RM3.92 to RM3.94 today.
In terms of its performance against other currencies, the ringgit traded mixed against a basket of major currencies and most ASEAN currencies. It rose against the Japanese yen to 2.4629/4706 from 2.4639/4672 at Monday's close but depreciated versus the British pound to 5.2176/2336 from 5.2008/2074, and weakened against the euro to 4.5066/5204 from 4.4945/5002.
The ringgit was slightly lower against the Singapore dollar at 3.0659/0756 from 3.0650/0692 and retreated versus the Thai baht to 12.1062/1530 from 12.0644/0857. However, it edged up against the Indonesian rupiah to 230.5/231.4 from 230.9/231.3 and advanced versus the Philippine peso to 6.54/6.57 from 6.55/6.56 previously.