Malaysia’s ringgit opens higher against most major currencies but eases versus the US dollar amid renewed West Asia tensions and cautious markets.
KUALA LUMPUR: The ringgit opened higher against most major currencies but eased versus the US dollar as investors remained cautious following renewed escalation in the West Asia conflict, which dimmed hopes for a peace deal between the United States and Iran.
At 8 am, the local unit traded at 3.9100/9200 against the greenback, compared with Thursday’s close of 3.9070/9115.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) is quite flat, at around 98 points, as market participants await the release of the latest US jobs data.
Meanwhile, he noted that the ringgit closed 0.42 per cent higher against the greenback to RM3.9093 yesterday, after Bank Negara Malaysia (BNM) kept the overnight policy rate (OPR) unchanged at 2.75 per cent.
“They remain confident that strong economic fundamentals and sound economic policies would help the country’s economy to sustain its growth momentum.
“Hence, steady OPR should be ringgit-positive. On that note, expect the local currency to remain around RM3.90 against the greenback today,” he told Bernama.
At the opening, the ringgit traded higher against a basket of major currencies.
It strengthened against the euro to 4.5872/5989 from 4.5978/6031at Thursday’s close, rose versus the British pound to 5.3004/3140 from 5.3202/3263 previously, and strengthened against the Japanese yen to 2.4925/4990 from 2.4982/5013 from yesterday.
The local currency was mostly higher against regional peers.
It appreciated against the Singapore dollar to 3.0807/0890 from 3.0861/0901at Thursday’s close and strengthened versus the Thai baht to 12.1098/1479 from 12.1486/1687.
The local note traded almost flat against the Indonesian rupiah at 225.5/226.2 from 225.4/225, and there was little change versus the Philippine peso at 6.47/4/6.49 from 6.46/6.48.
