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Oil and gas, palm oil and rubber augur well for ringgit

by April 16, 2016 General

KUALA LUMPUR, April 16 — The ringgit will likely remain strong as Brent crude oil is hovering around US$43 per barrel, renewing optimism towards the local note.

Affin Hwang Investment Bank vice-president/head of retail research Datuk Dr Nazri Khan Adam Khan said the optimism would help Malaysia’s oil and gas revenue.

“With oil palm and rubber (prices) going up, we have a momentum from the commodities to support the sentiment for next week,” he told Bernama.

As China’s trade data remain positive and solid, the figures indicate its economy is stabilising.

On the home front, the upcoming Sarawak election will be a domestic catalyst to support the sentiment.

“For the first quarter of this year, foreign funds turned net buyers at RM5.5 billion, a reversal from a net outflow of RM3.3 billion in the same period a year ago,” Nazri said.

The local note ended at 3.9000/0100 against the greenback yesterday, lower than 3.9000/9050 registered the previous Friday.

The ringgit fell against the Singapore dollar to 2.8683/8773 from 2.8521/8554 yesterday and declined against the yen to 3.5656/5757 from 3.5626/5663 on Thursday.

It fell against the British pound to 5.5232/5381 from 5.5012/5074 on Thursday and was lower against the euro at 4.3930/4046 from 4.3825/3866 yesterday. — Bernama