KUALA LUMPUR: The ringgit opened marginally higher against the US dollar on Tuesday, even as risk-off sentiment prevailed amid the ongoing military conflict in the Middle East.
At 8 am, the local currency was traded at 3.9210/9340 against the greenback, compared with yesterday’s close of 3.9225/9295.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said oil prices had risen sharply on heightened geopolitical tensions, but investors were shifting focus to how global central banks might respond to potential inflationary pressures, particularly as economic growth remains subdued.
"The US Dollar Index (DXY) is hovering at 98.381 points, slightly higher than last week’s level of around 97 points.
"Yesterday, the ringgit closed up 0.9 per cent from Friday. So far, it has remained resilient despite concerns over geopolitical tensions in the Middle East, higher crude oil prices and the resulting inflationary pressures,” he told Bernama.
He expects the ringgit to trade above RM3.90 against the US dollar in the near term, likely fluctuating between RM3.90 and RM3.95, in the absence of any signs of de-escalation in the conflict.
At the time of writing, West Texas Intermediate crude slipped 0.24 per cent to US$71.06 per barrel, while Brent crude rose 6.68 per cent to US$77.74 per barrel.
In early trade, the ringgit was mostly firmer against major currencies.
It strengthened against the euro to 4.5852/6004 from 4.6031/6113 at Monday’s close and rose versus the Japanese yen to 2.4928/5014 from 2.4984/5032.
However, it eased against the British pound to 5.2573/2747 from 5.2460/2553 previously.
The local note traded mixed against ASEAN peers.
It edged up against the Singapore dollar to 3.0809/0916 from 3.0854/0912 and was slightly firmer versus the Philippine peso at 6.73/6.76 from 6.74/6.76.
It was little changed against the Indonesian rupiah at 232.4/233.3 from 232.5/233.0, but weakened against the Thai baht to 12.5012/5539 from 12.4682/4980. - Bernama
