Ringgit opens higher against major currencies, eases versus US dollar

KUALA LUMPUR, Aug 21 – The Malaysian ringgit opened higher against most major currencies on Monday but experienced a slight decline against the US dollar, according to an economist. At 8am, the local currency weakened slightly to 4.0430/0500 against the US dollar from yesterday's close of 4.0425/0470. Dr Mohd Afzanizam Abdul Rashid, Chief Economist of Bank Muamalat Malaysia Bhd, attributed this movement to growing concern over escalating tensions between the United States and Iran.

He predicted that the US government would likely announce measures to isolate Iran economically in the near term, leading to a 1.75 percent rise in Brent crude prices to $93.22 a barrel. The US government's efforts to buy back US Treasuries to curb rising yields also contributed to the mixed performance of the ringgit. Analysts expect the currency to trade between RM4.04 and RM4.06 against the US dollar today, as they monitor the US's strategy to pressure Iran and potentially implement further protectionist policies toward Iranian trade partners.