KUALA LUMPUR, April 5 — The ringgit rebounded to end higher against the US dollar today, supported by rising oil prices as concerns emerged over new sanctions on Russia, an analyst said.
At 6pm, the local currency improved to 4.2080/2125 versus the greenback from 4.2185/2215 at Monday’s close.
OANDA senior market analyst Asia Pacific Jeffrey Halley said oil markets had rallied overnight, as calls grew in Europe for wider sanctions from the eurozone on Russia after evidence of civilian atrocities in northern Ukraine.
He said fears also mounted that Europe would finally target the Russian energy sector, further squeezing supplies.
“I believe there is very little chance that Europe will sanction Russian energy, as there is no immediate alternative and the effect would plunge Germany into a recession.
“However, even the slightest chance that Europe might actually do something along those lines was enough to send oil prices rallying again in Asia,” he told Bernama.
At the time of writing, benchmark Brent crude oil price rose 0.58 per cent to US$108.2 per barrel.
Meanwhile, at the close, the ringgit was also traded higher against a basket of major currencies.
The local unit appreciated against the British pound to 5.5297/5356 from 5.5330/5369 at Monday’s close and rose versus the euro to 4.6191/6241 from 4.6441/6474.
It also advanced vis-a-vis the Singapore dollar to 3.1048/1086 from 3.1082/1109 on Monday and gained against the Japanese yen to 3.4256/4295 from 3.4414/4442.
— Bernama
