KUALA LUMPUR: The ringgit ended higher against the US dollar ahead of the outcome of the virtual meeting to be held by the Organisation of the Petroleum Exporting Countries and allied oil producers (OPEC+) later today, said an analyst.
At 6 pm, the domestic unit was pegged at 4.3320/3380 against the greenback from Wednesday’s close of 4.3450/3545.
OANDA’s senior market analyst for Asia Pacific, Jeffrey Halley, said Asian currencies have entered a holding pattern ahead of a major event risk tonight and a long weekend across most of the region.
“The market is awaiting the outcome of the OPEC+ meeting on oil production cuts and the US jobless claims data this evening. Of the two, the OPEC+ meeting is probably the most important for the ringgit,” he said.
The crude oil price has rallied in anticipation of a 10-million barrel reduction in production and this has pushed emerging market currencies higher this week, he added.
“A cut above 15 million barrels should see renewed strength in the ringgit. A failure to strike an agreement would see oil price collapsing and the ringgit dropping,” said Halley.
Meanwhile, the ringgit was traded mixed against a basket of currencies.
The domestic unit eased against the Singapore dollar at 3.0432/0841 from 3.0406/0487 on Wednesday and rose against the yen to 3.9802/9868 from 3.9906/0005 yesterday.
It fell against the British pound to 5.3834/3926 from 5.3376/3526 but slightly advanced against the euro to 4.7123/7202 from 4.7173/7291. – April 9, 2020, Bernama
