The Malaysian ringgit opened lower against the US dollar as Middle East tensions escalated, raising concerns over oil prices and global economic stability.
KUALA LUMPUR: The ringgit opened marginally lower against the US dollar on Monday as risk-off sentiment intensified following a joint United States-Israel strike on Iran over the weekend.
At 8.01am, the local note eased 0.19% to 4.8985/9205 against the greenback from last Friday’s close of 4.8910/8960.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said key uncertainties centred on the duration and severity of the conflict.
“Iran’s move to halt traffic through the Strait of Hormuz and the potential escalation into a regional conflict are immediate risks,” he told Bernama.
He added that crude oil prices could spike and business sentiment could weaken as a result.
“Coupled with concerns over the risk of stagflation in the US, this risk-off environment could see the ringgit trade weaker today,” he said.
At the time of writing, WTI crude rose 7.01% to US$71.72 per barrel, while Brent crude gained 7.34% to US$78.22 per barrel.
At the opening, the ringgit strengthened against a basket of major currencies.
It appreciated against the euro to 4.5835/6093 from 4.5898/5957 at last Friday’s close.
The local note also rose against the Japanese yen to 2.4885/5027 from 2.4930/4963 and edged higher against the British pound to 5.2252/2546 from 5.2470/2538.
Against ASEAN currencies, the ringgit traded mixed.
It edged up against the Singapore dollar to 3.0697/0873 from 3.0742/0784 and strengthened against the Thai baht to 12.4732/5512 from 12.5153/5370.
However, it slipped against the Philippine peso to 6.76/6.80 from 6.75/6.76.
The ringgit also fell against the Indonesian rupiah to 232.1/233.6 from 231.7/232.2.
