Malaysia’s ringgit edges up against the greenback as geopolitical uncertainties in the Strait of Hormuz boost crude oil prices.
KUALA LUMPUR: The ringgit opened higher against the US dollar on Tuesday, amid uncertainties in the Strait of Hormuz, which lifted global crude oil prices, an analyst said.
At 8 am, the local currency edged up to 4.0675/0730 versus the greenback from 4.0680/0730 at last Monday’s close.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the situation in the Strait of Hormuz will be the main focus now, with crude oil prices such as WTI and Brent having risen by 9.42 per cent and 9.35 per cent to US$78.14 per barrel and US$83.12 per barrel, respectively.
Meanwhile, he said the two- and 10-year US Treasury bonds yielded higher by eight and six basis points to 4.28 per cent and 4.62 per cent, respectively, as inflation is expected to trend higher, reinforcing the view that the US Federal Reserve might raise the policy rate this year.
“Such a premise has bolstered the US dollar index (DXY) to 101.276 points.
“Against such a backdrop, emerging market currencies, including the ringgit, are expected to be volatile in the near term; hence, the ringgit-dollar would range between 4.07 and 4.10 today,” he told Bernama.
At the opening, the ringgit traded higher against a basket of major currencies.
It appreciated versus the Japanese yen to 2.5040/5075 from 2.5110/5142 at Monday’s close, strengthened against the British pound to 5.4297/4370 from 5.4475/4542, and increased vis-a-vis the euro to 4.6296/6359 from 4.6501/6558 previously.
The ringgit was traded mixed against ASEAN currencies.
It rose against the Singapore dollar to 3.1417/1464 from Monday’s close of 3.1489/1530, and was firmer against the Thai baht to 12.1396/1618 from 12.1953/2151 previously.
However, the local note was unchanged against the Indonesian rupiah at 224.6/225.0 and flat against the Philippine peso at 6.60/6.62 from yesterday’s close.
