Ringgit opens higher against major currencies, ease vs US dollar

KUALA LUMPUR: The ringgit started the day stronger against major currencies on Friday but showed a slight dip against the US dollar due to rising US-Iran tensions, a local economist explained. At 8am, the currency weakened to 4.0430/0500 from Thursday's close of 4.0425/0470. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid attributed this to the US government's efforts to economically isolate Iran and potential upcoming measures.

This situation has driven up Brent crude prices by 1.75 per cent to $93.22 a barrel, according to Dr Afzanizam. In response, the US is also accelerating its buyback of US Treasuries to prevent yields from surging. The 30-year US Treasury yield rose by six basis points to 5.25 per cent, he told Bernama. The primary concern, according to Dr Afzanizam, is the manner in which the US intends to economically isolate Iran and whether it will prompt further protectionist policies towards Iranian trade partners.

Consequently, he predicted the ringgit would trade between RM4.04 and RM4.06 against the US dollar. At the opening, the ringgit was higher against a range of major currencies, including the Japanese yen, British pound, and euro. However, it was mixed against regional currencies, rising against the Singapore dollar and falling against the Thai baht.

The ringgit remained stable against the Indonesian rupiah and nearly unchanged against the Philippine peso.