KUALA LUMPUR, March 1 — The ringgit extended yesterday’s gains to end higher against the US dollar today, boosted by steady oil prices resulting from the ongoing Russia-Ukraine conflict, a dealer said.
At 6pm, the local note stood at 4.1920/1945 versus the greenback compared with 4.1970/2015 at Monday’s close.
A news report said that oil prices surged on Tuesday as talks of a coordinated global crude stocks release failed to quell concerns over supply disruptions due to the Russian invasion of Ukraine and related sanctions.
Meanwhile, a dealer said that after the strong breakout of the downtrend line last week, a bearish pullback of the greenback against the local currency was to be expected.
However, he said US President Joe Biden’s speech later today may have a greater impact on the market, as he was expected to make an announcement on the situation in Ukraine.
“Despite the fact that he has repeatedly said that he does not intend to send military forces to Ukraine, the market will be watching as it is possible that he will announce new sanctions against Russia.
“From a technical point of view, if US dollar/ringgit manages to break above 4.2050, it will have effectively completed the downtrend line breakout pattern and could rally as high as 4.2450 in a few days,” he said.
Brent crude has risen above US$102 per barrel amid worries over the crisis in Eastern Europe.
At the close, the ringgit was traded lower against a basket of other major currencies.
It weakened versus the Singapore dollar to 3.0944/0967 from 3.0897/0934 at the close yesterday and depreciated vis-a-vis the British pound to 5.6231/6265 from 5.6139/6199.
The local currency declined against the yen to 3.6519/6544 from 3.6319/6361 on Monday and eased versus the euro to 4.6934/6962 from 4.6922/6973 previously.
— Bernama
