Ringgit ends higher on weaker US dollar, firmer oil

KUALA LUMPUR, July 7 — The ringgit closed higher against the US dollar today, tracking gains in regional currencies as a weaker greenback and firmer crude oil prices lifted sentiment, an analyst said.

At 6 pm, the local currency strengthened to 4.0685/0735 against the US dollar from yesterday’s close of 4.0825/0875.

Crude oil prices rose after reports of a missile attack on a liquefied natural gas tanker off the coast of Oman, fuelling concerns over energy supplies and the implementation of a potential US-Iran agreement.

Iran and the United States are currently holding 60-day negotiations on a final agreement based on a memorandum of understanding signed in May.

Meanwhile, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the slight decline in the US Institute for Supply Management (ISM) services purchasing managers index (PMI) to 54.0 points in June had lent support to Asian currencies, as expectations of further US interest rate hikes remained uncertain.

“From a technical point of view, the ringgit remains oversold, suggesting there is still room for further gains. Traders and investors are now awaiting the minutes of the US Federal Open Market Committee meeting on Thursday for further guidance on the Federal Reserve’s interest rate outlook,” he told Bernama.

At the close, the ringgit was higher against a basket of major currencies.

It strengthened against the Japanese yen to 2.5124/5156 from 2.5148/5180 on Monday, appreciated against the British pound to 5.4432/4499 from 5.4440/4507, and rose versus the euro to 4.6483/6540 from 4.6594/6651.

The local currency also traded higher against regional peers.

It advanced against the Singapore dollar to 3.1488/1529 from 3.1554/1595, climbed against the Thai baht to 12.2129/2331 from 12.2403/2600, strengthened against the Indonesian rupiah to 226.2/226.6 from 226.8/227.2, and edged up against the Philippine peso to 6.62/6.63 from 6.64/6.65 at Monday’s close. — Bernama