Strong performance of commodities boosts ringgit

Strong performance of commodities boosts ringgit
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KUALA LUMPUR (Oct 21): The ringgit opened higher on Thursday (Oct 21), buoyed by the positive sentiment following the strong performance of commodities.

Brent crude oil was trading at US$86 (about RM357.59) per barrel, while crude palm oil closed at an all-time high on Wednesday with the benchmark palm oil contract for January 2022 rising by RM127 to RM5,071 a tonne.

At 9.04am on Thursday, the local note stood at 4.1530/1565 versus the greenback from 4.1580/1615 recorded at Wednesday’s close.

The local note was gaining momentum despite the US dollar strengthening ahead of the US Federal Reserve’s (Fed) tapering process which starts next month, a dealer said.

He also noted that investors will be cautiously looking out for the Consumer Price Index (CPI) data to be released on Friday.

“But Budget 2022 is just around the corner to boost the country’s economic activities and make Malaysia a business-friendly destination, which will be a positive for our ringgit,” he said.

On Wednesday, Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said Budget 2022 will mirror the government’s determination to revive the country’s economy and restore foreign investors’ confidence.

Meanwhile, the local note was traded mostly lower against a basket of major currencies at the opening on Thursday, except against the yen where it inched up to 3.6321/6355 from 3.6327/6361 at the close on Wednesday.

The ringgit slipped against the Singapore dollar to 3.0928/0959 from 3.0919/0947 at Wednesday’s closing, fell against the British pound at 5.7419/7468 from 5.7260/7308 and declined against the euro to 4.8407/8448 from 4.8328/8369 previously.