Ringgit opens higher as crude prices rise


KUALA LUMPUR: The ringgit opened higher against the US dollar today, fuelled by increasing oil prices because of the anticipated lower production and ahead of US economic data expectations.

At 9.01am, the local currency rose to 4.1180/1240 against the greenback from Monday’s close of 4.1220/1270.

ActivTrades trader Dyogenes Rodrigues Diniz said investors will be paying attention to the ISM Manufacturing Purchasing Managers’ Index (PMI) for the US dollar due on Tuesday.

“This indicator measures the economic activity through the eyes of managers of the main companies in the US and it is a leading indicator because it shows the level of confidence in the future,” he said.

The Organisation of the Petroleum Exporting Countries (OPEC) on Monday projected that lower oil output in Nigeria, Angola, and Iran in May partly offset major increases from top producers Saudi Arabia and Iraq to result in a lower-than-expected rise in the supply.

OPEC and its allies, known as OPEC+ is scheduled to meet on Tuesday to discuss the alliance’s moves after July as oil stockpile is expected to become lower in the second half of the year as most countries recovered from the COVID-19 pandemic.

As at the time of writing, the benchmark Brent crude oil advanced 0.82 per cent to US$69.89 per barrel.

Meanwhile, against a basket of major currencies, the local note was traded lower at opening.

Against the Singapore dollar, the ringgit eased slightly to 3.1188/1245 from yesterday’s close of 3.1152/1194 and weakened vis-a-vis the euro to 5.0355/0445 from 5.0227/0304.

It also depreciated against the yen to 3.7638/7697 from 3.7565/7621 and lowered against the British pound to 5.8591/8680 from 5.8421/8508. – Bernama

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