KUALA LUMPUR: Last week the ringgit Malaysia extended its recovery to open higher against today’s US dollar, backed by firmer crude oil prices.
The local currency stood at its highest position against the greenback since January last week, slipping below the psychologically relevant 4.10 mark to become one of Asia’s best performers against the US dollar, an analyst said.
At 9 a.m., the local currency stood against the greenback at 4.0850/0930 compared to the close of 4.0900/0940.0 last Friday.
Stephen Innes, chief global market strategist for Axi, said it was a reasonably positive start to the week for the ringgit Malaysia, which was backed by the oil price that rose last week by 5%.
“Despite concerns about the potential impact of a new wave of lockdowns, oil had a great week as Western governments were trying to mitigate the effects of rising coronavirus infections,” he told Bernama.
He added that the recent good news about the effectiveness of coronavirus vaccines in progress has helped to fuel positive sentiment.
It was also strengthened by the hope that during its meeting at the end of this month, Opec and its allies (Opec+) would be able to extend the current production cuts by three to six months, as recommended by the Joint Technical Committee of Opec earlier this week.
Innes noted, however, that by growing Covid-19 cases across the globe, the vaccine-driven optimistic medium-term outlook is being offset.
Mixed against other major currencies, the ringgit was traded.
Compared to last Friday’s 3.0434/0479, the local note was marginally higher against the Singapore dollar at 3.0426/0497 compared to last Friday’s 3.0434/0479, and rose from 3.9399/9445 against the yen to 3.9358/9443.
It slipped from 4.8495/8559 last Friday to 4.8497/8596 against the euro and decreased to 5.4363/4478 against the British pound from 5.4295/4360.