KUALA LUMPUR: The ringgit opened marginally lower against the US dollar on the first trading day of March as risk-off sentiment intensified following a joint United States-Israel strike on Iran over the weekend.
At 8.01 am, the ringgit eased 0.19 per cent to 3.8985/9205 against the greenback from last Friday’s close of 3.8910/8960.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said key uncertainties centred on the duration and severity of the conflict.
"Iran’s move to halt traffic through the Strait of Hormuz and the potential escalation into a regional conflict are immediate risks. As a result, crude oil prices could spike and business sentiment could weaken.
"Coupled with concerns over the risk of stagflation in the US, which could also affect other countries, this risk-off environment could see the ringgit trade weaker today,” he told Bernama.
At the time of writing, WTI crude rose 7.01 per cent to US$71.72 per barrel, while Brent crude gained 7.34 per cent to US$78.22 per barrel.
At the opening, the ringgit strengthened against a basket of major currencies.
It appreciated against the euro to 4.5835/6093 from 4.5898/5957 at last Friday’s close, rose against the Japanese yen to 2.4885/5027 from 2.4930/4963 and edged higher against the British pound to 5.2252/2546 from 5.2470/2538 yesterday.
Against ASEAN currencies, the local note traded mixed.
It edged up against the Singapore dollar to 3.0697/0873 from 3.0742/0784 at last Friday’s close and strengthened against the Thai baht to 12.4732/5512 from 12.5153/5370.
However, it slipped against the Philippine peso to 6.76/6.80 from 6.75/6.76 and fell against the Indonesian rupiah to 232.1/233.6 from 231.7/232.2. - Bernama
