KUALA LUMPUR: The ringgit recovered from yesterday’s losses to open higher against the US dollar today on steady commodity prices, said an analyst.
At 9am, the local currency appreciated to 4.1840/1865 versus the greenback from Thursday’s close of 4.1865/1880.
Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid believes the rising Brent crude and crude palm oil (CPO) prices could be supportive for the local note as it will benefit the economy.
Brent crude has continued to hover above US$92 per barrel level, while Malaysia’s CPO benchmark price rose to RM5,507 a tonne at yesterday’s close.
However, the dollar is expected to gain traction following the unresolved Russia-Ukraine conflict.
“The dispute is unlikely to be resolved and could be in for a long haul given the trust deficits among the Western powers towards Russia.
“Apart from that, the expected 50 basis points hike…