The Malaysian ringgit weakened against the US dollar as traders adopted a cautious stance ahead of key US-Iran talks, with rising oil prices adding to market pressure.
KUALA LUMPUR: The ringgit opened lower against the US dollar on Thursday, weighed by cautious sentiment as traders awaited clearer outcomes from ongoing United States-Iran negotiations.
At 8 am, the local currency eased to 3.9550/9600 versus the greenback, from 3.9510/9550 at Wednesday’s close.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the dollar-ringgit pair has been hovering around RM3.95, as shifting optimism and pessimism kept trade directionless in the near term.
He added that West Texas Intermediate (WTI) and Brent crude prices were rising to US$92.96 and US$101.69 per barrel, respectively, amid a lack of progress on the reopening of the Strait of Hormuz, which continued to weigh on sentiment and the ringgit.
“At the same time, benchmark US equities closed higher overnight, with the S&P 500 hitting another record high, while US Treasury yields rose, signalling that prospects of higher inflation may prompt the Federal Reserve to maintain a restrictive monetary policy stance,” he told Bernama.
At the open, the ringgit traded mostly higher against a basket of major currencies.
It strengthened against the British pound to 5.3389/3456 from 5.3414/3468 at Wednesday’s close and rose versus the euro to 4.6293/6352 from 4.6408/6455, but edged lower against the Japanese yen to 2.4798/4831 from 2.4794/4821.
The local currency traded mixed against its ASEAN peers.
It rose versus the Singapore dollar to 3.1000/1042 from 3.1030/1063 at Wednesday’s close and appreciated against the Thai baht to 12.2567/2795 from 12.2717/2902, but weakened against the Indonesian rupiah to 230.2/230.5 from 229.9/230.2 and was flat against the Philippine peso at 6.57/6.59 from 6.57/6.58 previously.
