Ringgit eases against US dollar but gains against most major, regional currencies

Malaysia's currency, the ringgit, exhibited mixed performance against various currencies on September 11. While it weakened against the US dollar, it gained against most major and regional currencies. This shift in value was primarily driven by a surge in crude oil prices and anticipation of a potential interest rate increase by the United States Federal Reserve (Fed).

The greenback benefited from these factors, causing the ringgit to depreciate to 4.0685/0725 against the dollar from its previous close of 4.0630/0670. Dr Mohd Afzanizam Abdul Rashid, the chief economist of Bank Muamalat Malaysia Bhd, attributed the rise in oil prices to heightened geopolitical tensions arising from the conflict between the US, Israel, and Iran.

Brent crude oil prices surged to approximately US$104.64 per barrel. Simultaneously, expectations of a Fed interest rate hike bolstered the US dollar's value. Market focus now shifts to the Fed's interest rate decision and forthcoming economic projections, including GDP growth, inflation, unemployment, and the federal funds rate.

The ringgit demonstrated strength against the euro, Japanese yen, British pound, and ASEAN currencies, such as the Singapore dollar, Thai baht, and Indonesian rupiah. However, it remained unchanged against the Philippine peso, at 6.49/6.50.