KUALA LUMPUR: Thanks to higher oil and commodity prices, the ringgit staged another strong move and continues rally against US$.
The local note jumped to 4.0470/0530 at 9.06 am, from the close of 4.0500/0550 on Friday.
The ringgit is in a complete catch-up mode with commodity prices trading firmer and oil prices well supported at recent highs due to vaccine optimism as excitement for commodity-linked-currencies supersedes all else at the moment, Axi chief global market strategist Stephen Innes said.
Axi chief global market strategist – Stephen Innes
My concern is that oil prices have gone too far and that they could be vulnerable to near-term economic or even hiccups in the supply chains of vaccines but our post-US election optimism for the ringgit remains overall”.
My concern is that oil prices have gone too far and that they could be sensitive to near term economic or even hiccup in the vaccine supply chains but overall our post-US election optimism for the ringgit endures.”
Crude Brent traded higher at press time, close to US$50 per barrel. At the same time, West Texas Intermediate traded at US$46.58 per barrel.
Moreover, Innes said it is promising that the Brexit talks didn’t end with a no-deal Brexit.
The leaders of the UK and Europe have been stated to have pledged to go the extra mile” in an attempt to commit to an agreement.
“I think the key risk this week will be the outcome of the Federal Open Market Committee final meeting for 2020,” he said.
On December 15-16, the Fed will hold its last policy meeting of the year.
Meanwhile, against other major currencies, the ringgit also traded mostly higher.
It rose to 3.0292/0339 against the Singapore dollar from 3.0301/0332 at the close of Friday. And it also increased to 4.9042/9130 against the euro from 4.9074/9122.
It also increased from 3.8927/8964 to 3.8899/8960 against the Japanese yen, but decreased from 5.3537/3585 against the British pound to 5.3797/3893. – Bernama, Bernama