The ringgit opened slightly higher against the US dollar and several major currencies on Tuesday, supported by improved market sentiment following easing global oil prices and developments on the geopolitical front.
At 8am, the ringgit strengthened marginally to 4.0750/0805 against the US dollar, compared with Monday’s close of 4.0755/0800.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said Brent crude oil prices fell 3.4% to US$100.34 a barrel.
He said the decline followed satellite data indicating that Saudi Arabia had shifted more of its oil exports through the Strait of Hormuz after its East-West pipeline was disrupted.
Saudi Arabia has reportedly increased crude oil exports through the Strait of Hormuz to around 2.9 million barrels per day, up from about 700,000 barrels per day in August.
“At the same time, the willingness of US President Donald Trump to meet the Iranian President during the United Nations General Assembly this week also suggests some positive development with respect to the war in West Asia,” Mohd Afzanizam told Bernama.
He said the latest developments could allow the ringgit to gradually appreciate against the US dollar during the day.
Against other major currencies, the ringgit rose against the euro to 4.6716/6779 from 4.6783/6834 previously.
It also strengthened against the British pound to 5.4475/4548 from 5.4542/4603, while gaining against the Japanese yen to 2.5893/5931 from 2.5916/5946.
Against ASEAN currencies, the ringgit traded mixed.
It edged up against the Singapore dollar to 3.1931/1976 from 3.1950/1987 but weakened against the Thai baht to 12.2593/2822 from 12.2450/2637.
The local currency was little changed against the Indonesian rupiah at 228.3/228.7 compared with 228.3/228.6 previously, while it remained unchanged against the Philippine peso at 6.49/6.50.
