KUALA LUMPUR – The ringgit opened higher against the US dollar today on renewed demand, supported by steadier crude oil prices, said an analyst.
At 9.01 am, the local note traded 90 basis points (BPS) better at 4.0590/0650 versus the greenback from 4.0680/0730 at last Friday's closing.
Axi chief global market strategist Stephen Innes said the continued ascent of oil prices provides an essential reassurance source for the Malaysian market and the ringgit.
At the time of writing, Brent crude gained 0.79% to trade at US$59.81 per barrel.
"Renewed movement control order due to a spike in Covid-19 cases in Malaysia is likely to hit the services sector’s growth in the short term and is expected to weight on the local currency.
"Strong exports and a stronger renminbi could see the ringgit trade with a favourable bias today, but any renewed push higher in US yields could dampen sentiment," he said.
The Health Ministry had yesterday reported 3,731 Covid-19 cases and 15 deaths in the past 24 hours, with 3,369 recoveries, bringing the total number of those discharged to 190,339.
Meanwhile, the ringgit was traded mixed against other major currencies.
It appreciated against the Singapore dollar at 3.0414/0461 from 3.0415/0455 last Friday and improved against the Japanese yen to 3.8463/8524 from 3.8570/8621.
However, the local note depreciated against the British pound to 5.5710/5808 from 5.5687/5772 and declined versus the euro at 4.8834/8922 from 4.8714/8786 previously. – Bernama, February 8, 2021
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