Ringgit opens higher against greenback as prospect of Middle East de-escalation rises
KUALA LUMPUR: The ringgit opened higher against the US dollar on Tuesday (June 24) on the rising possibility of military de-escalation in the Middle East as United States (US) President Donald Trump announced a tentative ceasefire between Iran and Israel, said an analyst.
At 8am, the local note rose to 4.2770/2980 against the greenback from Monday's (June 23) close of 4.2915/2980.
The US Dollar Index was down 0.29% to 98.416 points Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that US President Donald Trump has announced that Israel and Iran have agreed to a tentative ceasefire, paving the way for resolving the military conflict.
He opined that traders and investors are moving away from safe-haven currencies as they believe the risk premium due to the Israel-Iran military conflict has somewhat reduced for now.
"Brent crude prices plunged to US$71.48 per barrel after hovering close to US$80 per barrel yesterday as prospects for de-escalation of military conflict are rising.
"As such, ringgit and other emerging market currencies are expected to perform favourably today in view of the positive development in the Middle East," he told Bernama.
At the opening, the ringgit traded lower against a basket of major currencies.
It trended lower against the Japanese yen at 2.9315/9461 from 2.9028/9074 at Monday's close, declined versus the British pound to 5.7932/8216 from 5.7437/7524, and fell against the euro to 4.9605/9848 from 4.9236/9311 previously.
The local note trended mixed against its Asean counterparts.
It advanced vis-a-vis the Indonesian rupiah to 259.3/260.7 from 260.2/260.7 at yesterday's close and gained against the Philippine peso to 7.42/7.46 from 7.44/7.46.
However, it depreciated against the Singapore dollar to 3.3339/3507 from 3.3188/3243 and weakened to 13.0361/1081 from 12.9998/13.0250 versus the Thai baht previously. - Bernama
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Barnama
18 minutes ago
- Barnama
Rubber Prices Likely To Trend Lower Next Week Due To Geopolitical Tensions
By Abdul Hamid A Rahman and K. Naveen Prabu KUALA LUMPUR, June 21 (Bernama) -- The rubber market is expected to trend lower next week, weighed down by escalating geopolitical tensions in the Middle East, according to the Malaysian Rubber Glove Manufacturers Association (MARGMA). A spokesperson from MARGMA said the market sentiment remains fragile and continues to pressure investor confidence and business activities. 'The market may experience a downtrend next week due to escalating geopolitical tensions, persistent global economic uncertainty, and weakening demand from China and the United States. 'The market will remain highly sensitive to regional rubber futures, movements in the ringgit against the US dollar, and fluctuations in crude oil benchmarks,' she said. Meanwhile, industry expert Denis Low said the rubber market is expected to trade cautiously with a lower bias next week, with replenishment activities serving as the primary driver. 'Weather disruptions are another key factor to watch, as the Thai Meteorological Department has warned of intensified Southwest Monsoon activity, which could bring heavy rainfall and strong winds to rubber-producing regions,' he said. On a week-to-week basis, the Malaysian Rubber Board's reference price for Standard Malaysian Rubber 20 (SMR 20) rose by half a sen to 703.5 sen per kilogramme (kg), while latex in bulk increased by 10 sen to 589.0 sen per kg. -- BERNAMA
Barnama
19 minutes ago
- Barnama
Rubber Market Ends Lower On Weak Regional Cues, Oil Price Drop
By K. Naveen Prabu KUALA LUMPUR, June 24 (Bernama) -- The Malaysian rubber market ended lower today, in tandem with the downtrend in regional rubber futures markets, a dealer said. He said the market was also dragged down by the fall in crude oil prices. 'Oil prices declined sharply to their lowest in more than a week on Tuesday as United States (US) President Donald Trump said a ceasefire has been agreed between Iran and Israel, alleviating worries of supply disruptions in the Middle East,' he told Bernama. At the time of writing, Brent crude oil prices declined 2.53 per cent to US$69.67 per barrel. Nevertheless, he said further losses were capped by concerns over dwindling natural rubber raw material supply due to adverse weather conditions in major producer Thailand. 'Flash floods in Thailand ended a second consecutive decline in Japanese rubber futures on Monday, according to broker Hexun Futures. 'Thailand's meteorological agency has warned of heavy rainfall and accumulation that could lead to flash flooding from June 23-27,' the dealer said. At 3 pm, the Malaysian Rubber Board (MRB) reported that the price of Standard Malaysian Rubber 20 (SMR 20) dipped by 6.5 sen to 693.50 sen per kilogramme (kg), while latex in bulk declined by 1.5 sen to 587.00 sen per kg.
Barnama
31 minutes ago
- Barnama
MOT To Hold TXA 2025 As Platform For Industry Players In Transport, Logistics
GENERAL SEPANG, June 24 (Bernama) -- The Ministry of Transport (MOT) will for the first time organise the Transport Expo Asia (TXA) 2025 from Nov 11 to 13, as a platform to bring together industry players in the transport and logistics sector. Transport Minister Anthony Loke said the organisation of TXA 2025 strengthens Malaysia's role as a regional leader in the competitive transport and logistics sector. He said it brings together policymakers, industry players, academics and technology providers to shape a smarter and more sustainable future of mobility and trade. "TXA 2025 is a platform for us to discuss and also shape a more sustainable and greener future for our country's transport facilities and trade," he said in a press conference after launching TXA 2025 here today. Loke said TXA is an additional event to the Langkawi International Maritime and Aerospace Exhibition (LIMA) but it focuses on industry players in the transport sector. He said the Cabinet had allowed the Transport Ministry to organise another event because LIMA would focus on defence while TXA would focus on transport and logistics. 'This year, MOT will not be the organiser of LIMA. TXA 2025 will be the inaugural edition of the biennial TXA series, with TXA 2026 planned for the third quarter of next year,' he said, adding that the location of the event would be determined later. He said among the important programmes organised with TXA 2025 was the 2025 Road Safety Congress, which would continue in the 2026 edition as an official annual event. 'This congress is being held to raise awareness and cooperation in strengthening road safety in Malaysia,' he said.
