Ringgit Rises to 4.0750 as Brent Crude Falls 3.4% to $100.34
The Malaysian currency strengthened against the dollar and major peers, driven by lower oil prices and diplomatic progress.
Key points
- Ringgit opened at 4.0750 against the US dollar, up from 4.0755 on Monday.
- Brent crude oil prices fell 3.4% to 100.34 dollars per barrel.
- Saudi Arabia raised Hormuz oil exports to 2.9 million barrels per day.
The ringgit opened at 4.0750 against the US dollar, marking a slight gain from Monday’s close. This movement reflects improved market sentiment amid falling global oil prices.
Brent crude dropped 3.4 percent to 100.34 dollars per barrel, a key factor in the currency’s strength. This decline followed satellite data confirming a shift in Saudi export routes.
Oil Export Route Shifts Impact Price
Saudi Arabia increased crude exports via the Strait of Hormuz to 2.9 million barrels daily. This volume is up from approximately 700,000 barrels in August due to pipeline disruptions.
Dr. Mohd Afzanizam of Bank Muamalat noted this logistical change eased supply concerns. The resulting price drop provided immediate support for the local currency.
Diplomatic Signals Boost Regional Sentiment
President Trump expressed willingness to meet the Iranian leader at the UN General Assembly. This potential dialogue suggests a reduction in geopolitical risks in West Asia.
Economists view this development as a positive signal for market stability. The ringgit is expected to maintain its appreciation trend through the trading day.
Currency Trades Mixed Among Peers
The ringgit gained against the euro, pound, and yen at the open. It also strengthened slightly against the Singapore dollar compared to previous close levels.
However, the local note depreciated against the Thai baht during the same period. It remained unchanged against the Indonesian rupiah and Philippine peso.
