KUALA LUMPUR, Feb 4 — The ringgit opened marginally higher against the US dollar today, supported by higher oil prices, with benchmark Brent crude nearing US$60 per barrel, said an analyst.

The local currency improved to 4.0470/0510 against the greenback from yesterday's close of 4.0490/0530.

OANDA Europe senior market analyst Craig Erlam said oil prices continued to push higher, making a third impressive day of gains yesterday as the Organisation of the Petroleum Exporting Countries plus (OPEC+) appeared to stick to the current output plans after the Joint Ministerial Monitoring Committee (JMMC) meeting.

"The group is optimistic of the recovery in 2021 and with the vaccine rollout well underway and there being continuing signs of promise, they have every reason to be.

"Better-than-expected inventory data and improved sentiment in the markets have further fuelled oil rally this week,” Erlam said in a note.

Meanwhile, Axi chief global market strategist Stephen Innes said the gains in ringgit were, however, capped by the weaker read on China’s Caixin/Markit services Purchasing Managers’ Index (PMI).

Reports said China’s services sector grew at its slowest pace in nine months in January, dropping sharply to 52.0, lowest since April 2020. from 56.3 in December.

The republic is Malaysia’s largest trading partner for the 11th consecutive year in 2019, with trade valued at RM316.6 billion, according to the Malaysia Trade Statistics Review.

Against other major currencies, the local unit was traded mostly higher.

It gained against the Singapore dollar to 3.0344/0392 from yesterday's 3.0359/0401 and slightly increased against the yen to 3.8517/8566 from 3.8533/8574 yesterday.

The local currency improved against the British pound to 5.5197/5256 from 5.5216/5287 but declined vis-a-vis the euro to 4.8710/8762 from 4.8677/8733. — Bernama