Rise In Oil Prices Lifts Ringgit Higher At Close

By Nurul Jannah Kamaruddin

KUALA LUMPUR, Dec 24 (Bernama) -- The ringgit maintained its upward trajectory to close higher against the US dollar and major currencies, mainly lifted by rising oil prices.

At 6 pm, the ringgit was trading at 4.4845/4900 against the greenback, up from Monday’s close of 4.4870/4925.

UOB Kay Hian Wealth Advisors head of investment research Mohd Sedek Jantan said the ringgit's performance was partly driven by a recovery in Brent crude oil prices, which have risen above US$73 per barrel at the time of writing. 

He said the oil market’s uptrend was driven by concerns over a potential supply glut and declining demand in the coming year.

Additionally, strong performance in the domestic equity market, driven by year-end portfolio adjustments, helped boost demand for the ringgit, he said. 

However, he anticipated demand for the ringgit to soften during this quiet trading week, as many traders are in a holiday mood with Christmas celebrations tomorrow and the New Year approaching.

"We also foresee higher demand for the United States (US) stocks this week following last week's major sell-off, which could limit interest in the ringgit,” he told Bernama. 

Overall, the ringgit strengthened against several major currencies. 

It appreciated against the Japanese yen to 2.8547/8586 from Monday’s close of 2.8636/8673, rose versus the British pound to 5.6209/6278 from 5.6384/6453, and edged higher vis-a-vis the euro to 4.6603/6660 from 4.6692/6749. 

The local note showed mixed performance compared to ASEAN currencies. 

It gained against the Singapore dollar, trading at 3.2979/3024 compared with 3.3095/3138 previously and was slightly higher against the Philippine peso at 7.66/7.68 from 7.67/7.68. 

It was flat versus the Indonesian rupiah at 276.9/277.4 from 276.9/277.5 and was weaker vis-a-vis the Thai baht to 13.1283/1517 from 13.1137/1360. 

-- BERNAMA