Rise In Oil Prices Lifts Ringgit Higher At Close

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KUALA LUMPUR: The ringgit maintained its upward trajectory to close higher against the US dollar and major currencies, mainly lifted by rising oil prices.
At 6pm, the ringgit was trading at 4.4845/4.4900 against the greenback, up from yesterday’s close of 4.4870/4.4925.UOB Kay Hian Wealth Advisors’ head of investment research Sedek Jantan said the ringgit’s performance is partly driven by a recovery in Brent crude oil prices, which have risen above US$73 (RM327.58) per barrel at the time of writing.
He said the oil market’s uptrend was driven by concerns over a potential supply glut and declining demand in the coming year.
“Additionally, strong performance in the domestic equity market, driven by year-end portfolio adjustments, helped boost demand for the ringgit,” he said.
However, he anticipated demand for the ringgit to soften during this quiet trading week, as many traders are in a holiday mood with Christmas celebrations tomorrow and the New Year approaching.
“We also foresee higher demand for the US stocks this week following last week’s major sell-off, which could limit interest in the ringgit,” he told Bernama.
Overall, the ringgit strengthened against several major currencies.
It appreciated against the Japanese yen to 2.8547/2.8586 from yesterday’s close of 2.8636/2.8673, rose versus the British pound to 5.6209/5.6278 from 5.6384/5.6453, and edged higher vis-a-vis the euro to 4.6603/4.6660 from 4.6692/4.6749.
The local currency showed mixed performance compared to Asean currencies.
It gained against the Singapore dollar, trading at 3.2979/3.3024 compared with 3.3095/3.3138 previously, and was slightly higher against the Philippine peso at 7.66/7.68 from 7.67/7.68.
It was flat versus the Indonesian rupiah at 276.9/277.4 and was weaker vis-a-vis the Thai baht to 13.1283/13.1517 from 13.1137/13.1360. - FMT

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