Ringgit opens higher against major currencies, eases vs dollar

KUALA LUMPUR: The Malaysian ringgit began the day on a stronger note against most major currencies, but experienced a slight easing against the US dollar on Friday, according to an economist. The local currency fell to 4.0430/4.0500 against the greenback from Thursday's closing rate of 4.0425/4.0470. Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid attributed the development to US government efforts to isolate Iran economically, with measures expected in the near future.

As a result, Brent crude prices rose by 1.75% to US$93.22 a barrel. The US government was also expanding its efforts to buy back US Treasuries, causing the 30-year US Treasury yield to increase by six basis points to 5.25%. Afzanizam believed that the main concern was how the US would isolate Iran economically and whether it would lead to further protectionist policies towards Iranian trade partners.

Consequently, he predicted that the ringgit would trade between RM4.04 and RM4.06 against the US dollar today. At the opening, the ringgit performed better against a basket of major currencies, strengthening against the Japanese yen, British pound, and euro. However, it traded mixed against regional currencies, rising against the Singapore dollar while falling against the Thai baht and remaining relatively stable against the Indonesian rupiah and Philippine peso.