Ringgit Rises Amid Rising Oil Prices Ahead of Key Central Bank Meetings
The Malaysian ringgit strengthened against most major and Asean currencies on Monday, but declined against the US dollar due to rising Brent crude prices.
Brent crude oil is currently trading at around US$107 per barrel, which is adding to inflationary pressures as markets anticipate the upcoming Federal Open Market Committee (FOMC) and Bank of Japan (BOJ) meetings.
According to Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, the inflationary bias will solidify the rate hike thesis this week, which means Asian currencies, including the ringgit, will remain guarded in the near term.
The ringgit appreciated against the euro, yen, British pound, Singapore dollar, Thai baht, Indonesian rupiah, and Philippine peso compared to last Friday's close.