The Malaysian ringgit strengthened against the US dollar and major currencies on Tuesday, buoyed by rising oil prices and strong domestic equity market performance. At 6 pm, the ringgit was trading at 4.4845/4900 against the US dollar, up from Monday’s close of 4.4870/4925. UOB Kay Hian Wealth Advisors head of investment research Mohd Sedek Jantan attributed the ringgit's performance to a recovery in Brent crude oil prices, which surpassed US$73 per barrel.
Concerns over a potential supply glut and declining demand next year were driving the oil market’s uptrend. Jantan also noted that strong performance in the domestic equity market, fueled by year-end portfolio adjustments, contributed to the demand for the ringgit. However, he anticipates demand for the ringgit to soften this week due to the holiday season. He expects higher demand for US stocks following last week's sell-off, which could limit interest in the ringgit. The ringgit also appreciated against major currencies such as the Japanese yen, British pound, and euro. It gained against the Singapore dollar and Philippine peso, while remaining flat against the Indonesian rupiah and weakening slightly against the Thai baht