Ringgit Rises Amid Geopolitical Jitters, Strengthens Across the Board
The ringgit opened higher against the US dollar and a basket of other major and ASEAN currencies on Monday, buoyed by cautious trading sentiment following heightened geopolitical risks in the Middle East.
At 8am, the local currency advanced to 4.2365/2600 against the greenback compared to Friday's close of 4.2435/2480.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid attributed the currency market's risk-off mode to the ongoing Israel-Iran military conflict. 'Risks of the conflict expanded in scope which undermined US military bases and assets in the Middle East region. It's going to be a risk-off mode in the currencies market,' he told local media.
The ringgit also appreciated against regional currencies, strengthening against the Singapore dollar to 3.3020/3206 from 3.3077/3118, the Thai baht to 13.0310/1101 from 13.0807/1018, the Indonesian rupiah to 259.8/261.4 from 260.2/260.6, and the Philippine peso to 7.54/7.59 from 7.55/7.56.
Dr Afzanizam said attention is now on oil prices, with Brent crude hovering around US$75.67 per barrel after briefly touching US$78.32. 'Judging from the prevailing oil price condition, it appears the risk-off mode has yet to result in significantly higher crude oil prices,' he noted.
Against major currencies, the ringgit also saw gains. It improved against the Japanese yen to 2.9300/9467 from 2.9448/9482, climbed against the British pound to 5.7379/7697 from 5.7482/7543, and firmed up versus the euro at 4.8872/9143 from 4.8906/8958. Related
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