KUALA LUMPUR: The ringgit ended higher against the US dollar, buoyed by the apparent ceasefire in the Israel-Iran conflict, says an economist.
At 6pm, the local note rose to 4.2410/2465 versus the greenback from Monday’s close of 4.2915/2980.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the de-escalation also led benchmark Brent crude oil prices to retreat to US$69.56 per barrel as risks to global oil supply appeared contained for now.
“Financial markets are responding with a sense of relief, and risk appetite is gradually returning.
“It’s early days. Investors remain cautious amid lingering uncertainties particularly with the US tariff pause set to expire in early July,” he told Bernama.
On the domestic front, he said Malaysia’s latest consumer price index reading of 1.2% reinforced the view that monetary policy remained tight, with real interest rates rising further.
“In summary, market sentiment may stay guarded in the short term.” — Bernama
