Ringgit snaps 6-day gains as oil dips

KUALA LUMPUR – The ringgit turned lower after a six-day winning streak as profit-taking emerged and oil prices dipped.

At 9.42am, the local currency rose to 4.0420/0460 against the US dollar from yesterday’s close of 4.0280/0320.

At press time, the crude Brent down to US$62.87 (RM254) and the West Texas Intermediate (WTI) dropped to US$59.66 per barrel.

The overnight Brent hit near its 13-month high yesterday, gaining 0.1% to U$63.35 a barrel. It was reported that a deep freeze in the US South shut wells and oil refineries in Texas.

The local currency was traded higher against other major currencies on Wednesday.

It increased against the Singapore dollar to 3.0403/0446 from Tuesday’s close of 3.0432/0467 and went up vis-a-vis the euro to 4.8840/8916 from 4.8948/9009.

The ringgit also appreciated against the yen to 3.8088/8139 from 3.8242/8283 and strengthened against the British pound to 5.6039/6124 from 5.6102/6166 previously.

Meanwhile, short-term rates are expected to remain stable today on Bank Negara Malaysia’s (BNM) operations to absorb surplus liquidity from the financial system.

The liquidity is estimated at RM39.7 billion in the conventional system and RM18 billion in Islamic funds.

BNM will conduct a range maturity auction (RMA) money tender worth RM5 billion for 2 to 28 days, and an Islamic range maturity auction (iRMA) Qard tender valued at RM2.7 billion for 7 to 28 days.

The central bank also announced the availability of reverse repo, sale-and-buy-back agreements, and collateralised commodity Murabahah facilities for tenors of one to three months.

At 4pm, BNM will conduct up to RM34.7 billion conventional overnight tenders and RM15.3 billion for Murabahah overnight tenders. – Bernama, February 17, 2021