Ringgit opens higher against major currencies, eases vs dollar

KUALA LUMPUR: The ringgit opened higher against most major currencies on Friday, but slightly eased against the US dollar, according to an economist. At 8am, the local currency traded at 4.0430/4.0500 against the greenback, down from Thursday's close of 4.0425/4.0470. Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid attributed the movement to escalating US-Iran tensions, which may prompt the US to impose economic sanctions on Iran in the near future.

This development pushed Brent crude prices up by 1.75% to US$93.22 a barrel. Meanwhile, the US government's efforts to buy back US Treasuries to control rising yields saw the 30-year US Treasury yield rise by six basis points to 5.25%. Afzanizam expressed concern over how the US would isolate Iran economically and whether it would result in further protectionist measures towards Iranian trade partners.

At opening, the ringgit performed well against a basket of major currencies, including the Japanese yen, British pound, and euro. However, its performance against regional currencies was mixed, with gains against the Singapore dollar and losses against the Thai baht. The ringgit remained stable against the Indonesian rupiah and nearly unchanged against the Philippine peso.