KUALA LUMPUR (June 3): The ringgit continued to strengthen against the US dollar to open higher today, as global oil demand sustained its recovery with oil price hovering above US$71 per barrel, a dealer said.
At 9.02am, the local currency rose to 4.1190/1220 against the greenback from Wednesday’s close of 4.1240/1250.
At the time of writing, the benchmark Brent crude oil advanced 0.38 per cent to US$71.62 per barrel.
The dealer said global oil demand is improving this summer, spurred by the ongoing recovery from COVID-19 in the US, China and parts of Europe as vaccinations accelerate, prompting more people to travel.
Meanwhile, ActivTrades trader Dyogenes Rodrigues Diniz noted that the market is wandering without a clear direction ahead of the release of the ADP Non-Farm Employment, as a preview of the Non-Farm Payroll, and the Initial Jobless Claims, both for the US.
“Investors will also keep a close eye on the Non-Farm Payroll data due on Friday, as altogether, these four macro indicators (including ISM Manufacturing Purchasing Managers’ Index), will offer investors a clearer picture of the strength of the US economic recovery, which will, in turn, impact the direction of the dollar in the next few weeks,” he said.
At the opening, the local note was traded mixed against a basket of major currencies.
Against the Singapore dollar, the ringgit increased slightly to 3.1148/1173 from yesterday’s close of 3.1153/1163 and rose against the yen to 3.7558/7589 from 3.7565/7579.
However, the ringgit weakened vis-a-vis the euro to 5.0285/0321 from 5.0226/0238 and slipped against the British pound to 5.8370/8413 from 5.8322/8336.-BERNAMA