The ringgit rebounded to end higher against the US dollar today on the back of a surge in crude oil prices, dealers said.
At 6 pm, the local unit was traded at 4.4610/4660 against the US dollar from 4.4640/4680 on Wednesday.
The global benchmark Brent crude oil futures were up 0.77% to US$52.24 per barrel while US West Texas Intermediate futures rose 0.59% to US$49.73 per barrel.
The Organisation of the Petroleum Exporting Countries’ (OPEC) agreement to cut production by 1.2 million barrels per day (bpd) from January next year, had helped push oil prices to almost 10% higher in the overnight trade.
International brokerage services provider, FXTM research analyst Lukman Otunuga said the surprising OPEC production cut deal eased some concerns over the excessive oversupply in the market.
“This market defying cut will be the first in eight years, a critical move which has ensured OPEC maintains some credibility,” he said in a statement today.
Meanwhile, the ringgit was traded mostly higher against a basket of major currencies.
The local note was lower against the British pound at 5.5932/6017 from Wednesday’s 5.5733/5805 but rose against the euro to 4.7420/7483 from 4.7479/7535 yesterday.
It edged up against the Singapore dollar to 3.1209/1266 from Wednesday’s 3.1296/1332 and appreciated versus the yen to 3.9080/9131 from 3.9466/9533 previously.