Ringgit opens slightly higher against US dollar, major currencies amid geopolitical risks

KUALA LUMPUR, Sept 29 — The Malaysian ringgit opened marginally higher against the US dollar and a group of major currencies on Tuesday, as geopolitical tensions persisted and drove investors towards defensive investments. By 8am, the ringgit had climbed to 4.0800/0865 against the US dollar, up from Monday's closing rate of 4.0805/0845.

Bank Muamalat Malaysia Bhd's chief economist, Dr Mohd Afzanizam, highlighted that Brent crude oil prices remained above $106 per barrel due to the ongoing US-Iran conflict, thus maintaining concerns about energy-related inflation. Dr Afzanizam explained that higher US Treasury yields, with the two-year and 10-year yields sitting at 4.9 and 5.2 percent respectively, suggested increased attractiveness of US dollar assets, which could negatively impact emerging-market currencies like the ringgit.

The ringgit opened stronger against several major currencies. It traded at 4.6390/6464 against the euro, up from 4.6416/6461 on Monday; 5.4072/4158 against the British pound, versus 5.4099/4152 previously; and 2.5928/5971 against the Japanese yen, from 2.5994/6021. Against other Southeast Asian currencies, the ringgit weakened against the Singapore dollar to 3.1937/1991, down from 3.1914/1948; remained unchanged against the Philippine peso at 6.52/6.54; and was flat against the Indonesian rupiah at 226.9/227.3.

However, the local currency showed a slight gain against the Thai baht, moving from 12.1429/1588 to 12.1338/1589.