The ringgit opened slightly higher against the US dollar today, supported by recovering global sentiment as investors reacted positively to developments in the oil market.
At 9:34 am, the ringgit opened at 3.9260, strengthening by 0.05% against the US dollar since opening early Tuesday in the Asian session.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid informed that the US Dollar Index (DXY) declined 0.65% to 99.712, while the price of Brent crude oil declined 2.84% to $100.21 per barrel.
He also stated that oil supply is expected to improve in the near future following the International Energy Agency (IEA) move to release strategic petroleum reserves.
In addition, sentiment was also boosted by the call by United States (US) President Donald Trump on other countries to ensure safe passage of ships through the Strait of Hormuz.
According to Mohd Afzanizam, the better outlook also boosted US equities overnight with major indices such as the S&P 500 and Nasdaq rising more than 1%.
Market attention is now on the two-day Federal Open Market Committee (FOMC) meeting which begins tonight.
The report is seen as important for fresh guidance on the US economic outlook and the Federal Reserve's (Fed) quarterly outlook.
At the open, the ringgit was traded mixed against other major currencies.
It rose against the Japanese yen to 2.4629/4706 from 2.4639/4672, but depreciated against the euro to 4.5066/5204 from 4.4945/5002 and declined against the British pound to 5.2176/2336 from 5.2008/2074.
Meanwhile, the ringgit was also traded mixed against ASEAN currencies.
It rose against the Indonesian rupiah to 230.5/231.4 from 230.9/231.3 and gained against the Philippine peso to 6.54/6.57 from 6.55/6.56 previously.
However, it depreciated against the Thai baht to 12.1062/1530 from 12.0644/0857 and was slightly lower against the Singapore dollar at 3.0659/0756 from 3.0650/0692 previously.
