Ringgit Hits 4.0750 per Dollar as Oil Prices Fall
The Malaysian currency rose against the US dollar and euro after Brent crude dropped 3.4 percent to $100.34 per barrel.
Key points
- Ringgit opened at 4.0750 per US dollar, up from 4.0755 the previous close.
- Brent crude oil prices fell 3.4 percent to $100.34 per barrel.
- Saudi Arabia increased Hormuz oil exports to 2.9 million barrels per day.
The ringgit opened at 4.0750 per US dollar, reversing Monday's slight loss. This move followed a 3.4 percent drop in Brent crude prices to $100.34 per barrel.
Market sentiment improved as global oil prices eased. Traders also noted positive geopolitical signals from upcoming diplomatic talks in the Middle East.
Oil price decline drives currency strength
Brent crude fell to $100.34 per barrel. This decline reduced inflationary pressure and supported risk-on trading behavior in Asian markets.
Saudi Arabia shifted exports to the Strait of Hormuz. Daily shipments rose to 2.9 million barrels, stabilizing global supply concerns.
Broad gains against major currencies
The ringgit gained 14 pips against the euro. It also rose against the British pound and the Japanese yen at the open.
Dr. Mohd Afzanizam of Bank Muamalat cited these moves. He noted that easing oil costs typically benefits net importer economies like Malaysia.
Mixed performance among regional peers
The currency strengthened slightly against the Singapore dollar. However, it lost ground against the Thai baht and held steady against the rupiah.
Analysts expect gradual appreciation throughout the day. The Malay Mail reports that diplomatic progress in West Asia remains a key watchpoint.
