The Malaysian ringgit strengthened against the US dollar and other major currencies, supported by stabilising oil prices following a coordinated global supply release

KUALA LUMPUR: The ringgit extended its gains at Thursday’s opening, buoyed by stabilising oil prices after a major coordinated supply release.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the market focus remained on oil after the International Energy Agency’s 32 member countries agreed to release 400 million barrels from strategic reserves.

The United States also announced it would release 172 million barrels into its domestic market.

“Such decisions aim to stabilise oil prices, especially at the retail level,” Mohd Afzanizam told Bernama.

He noted that the conflict in Iran has impacted retail oil prices, as rising costs can undermine consumer purchasing power.

Global leaders are preoccupied with price pressures and are taking steps to ensure retail fuel prices remain controlled.

At the opening, the local currency edged up to 3.9130/9350 against the US dollar from Wednesday’s close of 3.9175/9230.

Against other major currencies, the ringgit also traded higher.

It rose against the Japanese yen to 2.4596/4738 from 2.4719/4755 and strengthened against the British pound to 5.2360/2654 from 5.2545/2619.

The local note was firmer against the euro at 4.5164/5418 from 4.5412/5475.

The ringgit also gained against most ASEAN currencies.

It appreciated 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.

The currency strengthened against the Indonesian rupiah to 231.7/233.1 from 232.0/232.4 and improved against the Philippine peso to 6.61/6.66 from 6.62/6.64.

Meanwhile, the US Federal Reserve appears set to maintain its restrictive monetary policy stance at its meeting next week.

Amid heightened uncertainties, Mohd Afzanizam expects the ringgit to trade between RM3.9000 and RM3.9500 against the US dollar today.

At the time of writing, Brent crude had risen 7.55% to US$98.92 per barrel.

New York Mercantile Exchange natural gas prices increased 1.25% to US$3.25 per million British Thermal Units.

 The Sun Malaysia