Ringgit opens lower vs US$ as demand for greenback strengthens

KUALA LUMPUR: The ringgit opened lower against the US dollar due to higher demand for the greenback amidst the ongoing conflict in the Middle East.

At 9 am, the local currency fell to 4.7750/7785 against the greenback from last Friday’s close of 4.7655/7700.

Bank Muamalat Malaysia Bhd chief economist and social finance head Dr Mohd Afzanizam Abdul Rashid said he expects the US Federal Reserve to remain hawkish in light of the current situation, boosting demand for the greenback.

"We believe the US dollar will continue to be well supported, given the ongoing geopolitical event in the Middle East as market participants seek refuge against extreme volatility,” he told Bernama.

Meanwhile, the declining oil prices also influenced the ringgit’s retreat from its positive performance last Friday.

In the early session, the ringgit was traded lower versus a basket of major currencies.

It slipped against the euro to 5.0543/0580 from 5.0462/0510 at the close last Friday, decreased against the British pound to 5.8059/8102 from 5.7777/7831 last week and slipped against the yen to 3.1861/1886 from 3.1781/1813 previously.

At the same time, the local note was traded mixed against other Asian currencies.

It rose against the Thai baht to 13.0347/0489 from 13.0504/0681 at last Friday's close, but slipped against the Singapore dollar to 3.4773/4801 from 3.4731/4767, slid against the Indonesian rupiah to 300.7/301.2 from 300.1/300.7 last week and inched down versus the Philippines’ peso to 8.41/8.43 from 8.38/8.40 previously. - Bernama