Ringgit opens higher against US dollar as oil prices slip

KUALA LUMPUR, Sept 23 — The Malaysian ringgit opened higher against the US dollar on Monday, buoyed by falling oil prices and geopolitical optimism. At 8am, the ringgit was trading at 4.0680/0765 against the greenback, up from yesterday's close of 4.0730/0775. Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, pointed to supportive oil prices as a factor, with Brent crude prices hovering just below the US$100 mark at $99.25.

The recent US-Iranian talks at the UN General Assembly were viewed positively by Trump, offering a glimmer of hope for a potential peace agreement, though the situation remained fluid. The US Federal Reserve's stance on monetary policy remained uncertain, according to Dr Afzanizam. With Federal Funds futures contracts indicating a more than 50% chance of rate hikes in October and December, the market appeared to be anticipating two additional hikes this year, keeping the ringgit within a narrow trading range.

The local currency also strengthened against other major currencies, rising against the euro, British pound, and Japanese yen compared to its previous levels. The ringgit demonstrated resilience against Southeast Asian peers, including the Singapore dollar, Thai baht, Indonesian rupiah, and Philippine peso.