KUALA LUMPUR: The ringgit opened marginally higher against the United States (US) dollar on the first trading day of the week due to potential oil price gains resulting from rising geopolitical tensions in the Middle East.
At 9:05 am, the ringgit appreciated to 4.7100/7190 against the greenback, compared to Friday's close of 4.7160/7210.
SPI Asset Management managing director Stephen Innes said the ringgit may experience substantial upward movement, outperforming its counterparts in terms of trade in the event of a significant supply on oil prices.
"The potential rise in oil prices could provide support for the ringgit when considered in the context of cross-currency comparisons.
"It could benefit the ringgit as Malaysia is an oil-exporting country. When oil prices increase, the country's revenue from oil exports also goes up, which can have a positive effect on its currency," he told Bernama.
Innes also noted that the fate of the ringgit largely depend on the broader group of ten’s (G10) risk sentiment and the resilience of the US economy, with a particular focus on the US gross domestic product (GDP).
"It's worth noting that the US core inflation is anticipated to decrease, as indicated by the US Personal Consumption Expenditures (PCE) deflator, which could lead to a weakening of the US dollar later in the week.
"Therefore, I anticipate the ringgit's rate to hover around 4.70 to 4.73 this week," he added.
Meanwhile, the ringgit was traded mostly lower against a basket of major currencies.
It depreciated against the euro at 5.1344/1442 from 5.1324/1379 and was lower against the British pound at 5.9864/9978 from 5.9822/9886 at last Friday’s close.
It strengthened vis-à-vis against the Japanese yen to 3.1824/1887 from 3.1871/1907.
At the same time, the local note was traded mostly higher against Asean currencies.
It appreciated against the Singapore dollar to 3.5165/5237 from 3.5176/5216, edged up against the Indonesian rupiah to 301.5/302.3 from 301.9/302.4 and appreciated against the Philippines’ peso to 8.42/8.44 from 8.43/8.44 at last week close.
It slipped against the Thai baht to 13.2788/3102 from 13.2733/2941, previously. - Bernama
