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Strong commodities performance boosts ringgit

KUALA LUMPUR: The ringgit opened higher on Thursday, buoyed by the positive sentiment following the strong commodities performance.

Brent crude oil is currently trading at US$86 per barrel, while crude palm oil closed at an all-time high on Wednesday with the benchmark palm oil contract for January 2022 rising by RM127 to RM5,071 a tonne.

At 9.04 am, the local note stood at 4.1530/1565 versus the greenback from 4.1580/1615 recorded at Wednesday’s close.

The local note is currently gaining momentum despite the US dollar strengthening ahead of the United States Federal Reserve’s tapering process which starts next month, a dealer said.

He also noted that investors are cautiously looking out for the consumer price index data that will be released tomorrow.

“But Budget 2022 is just around the corner to boost the country’s economic activities and make Malaysia a business-friendly destination, which will be a positive for our ringgit,” he said.

On Wednesday, Finance Minister Tengku Zafrul Abdul Aziz said Budget 2022 will mirror the government’s determination to revive the country’s economy and restore foreign investors’ confidence.

Meanwhile, the local note was traded mostly lower against a basket of major currencies at the opening today, except against the yen where it inched up to 3.6321/6355 from 3.6327/6361 at the close on Wednesday.

The ringgit slipped against the Singapore dollar to 3.0928/0959 from 3.0919/0947 at yesterday’s closing, fell against the British pound at 5.7419/7468 from 5.7260/7308, and declined against the euro to 4.8407/8448 from 4.8328/8369 previously. – Bernama

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