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KUALA LUMPUR, Dec 17, 2015:

The ringgit rose against the US dollar in early session today on the US Federal Reserve decision to raise its interest rates yesterday.

At 9.00am, the local unit was quoted at 4.3115/3185 against the greenback from 4.3200/3300 yesterday.

The local unit was also traded higher against other major currencies at early session today.

It went up against the Singapore dollar to 3.0533/0597 from yesterday’s close of 3.0630/0709 and was higher against the yen at 3.5205/5276 from 3.5424/5518.

However, the ringgit depreciated against the British pound to 6.4578/4700 from yesterday’s close of 6.4882/4045 and strengthened against the euro to 4.6870/6955 from 4.7252/7366.

Reuters reported the People’s Bank of China set its official midpoint rate at 6.4757 per US dollar prior to the market open today, its weakest level since June 2011, and 0.2% weaker than the previous fix of 6.4626.

The sharply weaker yuan midpoint reflected the dollar’s strength in global markets after the Fed raised its policy interest rate overnight, traders said.

The dollar gained against the euro and yen today, rising after the Fed’s decision to hike interest rates for the first time since 2006 lifted risk appetite and Treasury yields.

Crude futures rose in Asian trade today, recouping some of the losses from the previous session, when they fell sharply after the Fed raised rates and official figures showed a surprise build in US inventories.

West Texas Intermediate for January delivery, the front-month contract, rose 17 cents to US$35.69 a barrel by 0100 GMT (9am malaysia time) after finishing settled down nearly 5% yesterday.

Brent crude for February delivery, the front-month contract from today was up 17 cents at US$37.56. The global benchmark fell US$1.34 to US$37.39 the previous session.

US crude stocks increased last week as imports into the Gulf Coast rose, data from the Energy Information Administration (EIA) showed yesterday, surprising analysts who expected inventories to decline.

The EIA data showed crude inventories rose 4.8 million barrels last week to near record highs, while analysts in a Reuters poll had forecast a drop of 1.4 million barrels.

Adding to the overall bearish global picture, OPEC producers see scant chance of a significant rise oil prices in 2016 as extra Iranian production could add to the ongoing glut and the prospect of voluntary output restraint remains remote.

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