The ringgit opened at a stable position against the US dollar today, driven by oil prices that remained stable following the International Energy Agency's (IEA) decision to release additional supply to the market.
At 9:19 am, the ringgit was trading at 3.9240, down 0.28% against the US dollar since opening early Thursday in the Asian session.
Bank Muamalat Malaysia Bhd Chief Economist, Dr Mohd Afzanizam Abdul Rashid stressed that oil prices continue to be an important factor in influencing market sentiment.
The decision by 32 IEA member countries to release 400 million barrels of oil from strategic reserves, followed by the United States' (US) announcement to release 172 million barrels of oil, aimed at reducing the pressure on retail prices that has surged due to the conflict in Iran.
He also noted that geopolitical tensions in the Middle East are adding to the burden of oil costs, thus reducing consumer purchasing power.
Mohd Afzanizam also expects the ringgit to move in the range of RM3.9000 to RM3.9500 against the US dollar today.
Brent crude oil prices rose 7.55% to $98.92 per barrel, while natural gas on the New York Mercantile Exchange rose 1.25% to $3.25 per million British Thermal Units.
Global moves to control retail fuel prices clearly indicate continued pressure on the world economy that has yet to subside.
Meanwhile, the market is now awaiting the decision of the US Federal Open Market Committee (FOMC) next week.
The central bank is expected to maintain monetary policy, adding a layer of uncertainty to capital flows and the value of the ringgit.
At the opening, the ringgit traded higher against a basket of currencies.
It rose against the Japanese yen to 2.4596/4738 from 2.4719/4755 yesterday, rose against the British pound to 5.2360/2654 from 5.2545/2619 and strengthened against the euro to 4.5164/5418 from 4.5412/5475.
The local currency also traded higher against its Asean counterparts.
It rose slightly against the Singapore dollar to 3.0661/0839 from 3.0754/0800 and rose against the Thai baht to 12.2346/3119 from 12.3386/3637 previously.
It also increased against the Philippine peso to 6.61/6.66 from 6.62/6.64 and increased against the Indonesian rupiah to 231.7/233.1 from 232.0/232.4 previously.
