Ringgit Surges as Oil Prices Ease, Geopolitics Shift

The ringgit opened stronger against the US dollar on Wednesday, supported by easing Brent crude oil prices and geopolitical developments. At 8 am, the ringgit rose to 4.0680/0765 against the greenback from Tuesday's close of 4.0730/0775.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that prevailing crude oil prices were supportive of the foreign exchange market, with Brent crude hovering below US$100 per barrel at US$99.25. He also pointed out that there was no clear indication from US Federal Reserve officials on the direction of monetary policy.

The odds of a rate hike in October and December were more than 50 percent, suggesting two more rate hikes this year, according to Dr Afzanizam. As such, he noted that the ringgit should stay in a narrow range trade today.