Ringgit edges up against US dollar as markets eye de-escalation in Iran conflict

KUALA LUMPUR, Nov 11 — The Malaysian ringgit edged up against the US dollar on November 11, buoyed by improved market sentiment and expectations of a de-escalation in the US-Iran conflict. The local currency reached 4.0540/0580 against the greenback by 6 pm, marking a slight improvement from Friday's close of 4.0565/0610. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid attributed this to US President Donald Trump's indication that further strikes against Iran were unnecessary.

He also noted that the conclusion of the US midterm elections might influence the current administration's policies. The ringgit traded within a narrow range of RM4.0510 and RM4.0590 throughout the day. By 5:05 pm, it stood at RM4.0547, up 0.11 percent from Friday's close. The trend correlated with the decline in the US Dollar Index, which fell 0.14 percent to 101.51, while Brent crude oil prices continued their downward trajectory to US$89.89 per barrel.

Dr Afzanizam emphasized that the expectation of a de-escalation in the Iran war had significantly boosted market sentiment. However, the ringgit traded lower against a basket of major currencies and its ASEAN counterparts.