Ringgit opens higher against US dollar, trading on cautious mode
KUALA LUMPUR: The ringgit opened higher against the US dollar on Friday as investors remained in cautious mode amid the escalating conflict in the Middle East, said an analyst.
At 8 am, the local note rose to 4.2490/2700 against the greenback from yesterday's close of 4.2590/2625.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said market sentiment will likely be cautious as traders and investors watch the evolving Israel-Iran conflict, while the US is considering its response to the currency pressures.
'Still, the US Dollar Index (DXY) hovering below 100 points signals that traders may be going to different major currencies or asset classes to seek protection,' he told Bernama.
However, in light of the heightened uncertainties, Mohd Afzanizam said the ringgit could remain weak in the near term.
At the opening, the ringgit traded mostly lower against a basket of major currencies.
It declined versus the British pound to 5.7264/7547 from 5.7164/7211 at Thursday's close and fell against the euro to 4.8910/9152 from 4.8868/8908 previously.
However, it was slightly higher against the Japanese yen at 2.9257/9404 from 2.9286/9312 previously.
Conversely, the local note trended higher against its ASEAN counterparts.
It appreciated against the Singapore dollar to 3.3051/3219 from 3.3072/3102 at yesterday's close, climbed to 12.9883/13.0593 from 12.9966/13.0513 versus the Thai baht, inched up vis-a-vis the Indonesian rupiah to 258.9/260.3 from 259.5/259.9 and gained against the Philippine peso to 7.39/7.44 from 7.41/7.42.
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