Ringgit ends firmer against most currencies, eases against US dollar
External developments, particularly the sharp rise in crude oil prices, continued to influence market sentiment, says analyst.
KUALA LUMPUR: The Malaysian ringgit ended the day stronger against most currencies, while weakening against the US dollar. This shift was driven by rising crude oil prices and anticipated interest rate hikes by the US Federal Reserve, which bolstered the value of the greenback. By 6pm, the ringgit fell to 4.0685/4.0725 against the US dollar from yesterday's closing rate of 4.0630/4.0670.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid highlighted external factors, particularly the surge in crude oil prices following the escalation of tensions between the US, Israel, and Iran. Brent crude oil prices rose to around US$104.64 per barrel. Meanwhile, expectations of an interest rate increase by the Federal Reserve also impacted the foreign exchange market, supporting the US dollar's value.
Looking ahead, market focus will shift towards the Federal Reserve's interest rate decision and economic projections, including GDP growth, inflation, unemployment, and the federal funds rate. At the end of trading, the ringgit performed better against a range of major currencies, including the euro, Japanese yen, and British pound.
Additionally, the ringgit showed strength against several Asean currencies, including the Singapore dollar, Thai baht, and Indonesian rupiah. Against the Philippine peso, the local currency remained stable at 6.49/6.50.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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