The ringgit opened higher against the US dollar and several major currencies on Friday, supported by improved market sentiment as concerns over crude oil supplies from the Middle East eased.
At 8am, the local currency stood at 4.0955/4.1015 against the US dollar, compared with Thursday’s close of 4.0965/4.1010.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said market sentiment improved after reports that Saudi Arabia had begun repairing the East-West pipeline, which was damaged, while tanker movements through the Strait of Hormuz continued.
He said the developments helped ease concerns over crude oil supplies.
“As a result, Brent crude prices fell 0.95 per cent to US$104.82 a barrel, while US Treasury yields also declined, with the two-year and 10-year notes falling seven basis points each to 4.67 per cent and 4.94 per cent respectively,” he told Bernama.
Mohd Afzanizam said market attention was now turning to the Bank of Japan’s (BOJ) monetary policy decision later today, with consensus expectations pointing to a 25-basis-point increase in its policy rate to 1.25 per cent.
He said investors would also be watching the BOJ’s assessment of the economy and its monetary policy outlook, as a more hawkish stance could prompt a reduction in yen carry trades and increase volatility in the foreign exchange market.
Against this backdrop, Mohd Afzanizam expects the ringgit to remain in a narrow range today as traders monitor developments surrounding the BOJ decision.
At the opening, the ringgit also strengthened against several major currencies.
It rose against the euro to 4.7000/4.7069 from 4.7003/4.7055 at Thursday’s close, while gaining against the yen to 2.6228/2.6268 from 2.6305/2.6336.
The local currency also strengthened against the pound to 5.4704/5.4784 from 5.4877/5.4937 previously.
Against other ASEAN currencies, the ringgit traded mixed.
It edged up against the Singapore dollar to 3.2096/3.2146 from 3.2099/3.2137, but weakened against the Thai baht to 12.3043/12.3279 from 12.2734/12.2917.
The ringgit was unchanged against the Philippine peso at 6.53/6.54 and the Indonesian rupiah at 230.7/231.1.
