KUALA LUMPUR: The ringgit snapped a three-day losing streak to close higher against the US dollar yesterday, supported by renewed demand for the local currency, although trading remained range-bound as traders and investors stayed cautious in view of geopolitical risks.
At 6pm, the ringgit rose by 0.09% to 3.9395/9465 versus the greenback from 3.9440/9495 at Tuesday’s close.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said markets were watching how the US-Israeli war on Iran could affect the global economy, especially inflation.
He told Bernama that countries that rely on oil imports from the Middle East, including Asian countries such as China, India, Japan and South Korea, could face disruptions in crude oil supplies which, in turn, can affect their domestic fuel prices.
According to him, the main question is how severe and how long the war would be.
Hence, the risk-off mode continues to prevail, he said.
“Today, Bank Negara Malaysia’s Monetary Policy Committee will decide the overnight policy rate and we opine that the rate is going to stick at 2.75%.
“More importantly, the market would want to see their latest assessment on the Iran war and its implication on the global and domestic economies,” he said.
At the close, the ringgit traded mostly lower against a basket of major currencies. It strengthened versus the euro to 4.5738/5819 from 4.5778/5842 at Tuesday’s close. However, it fell against the British pound to 5.2640/2733 from 5.2451/2524 the previous day and slipped vis-à-vis the Japanese yen to 2.5062/5108 from 2.5010/5048 previously.
The local note traded mixed against its Asean peers.
It eased versus the Singapore dollar at 3.0864/0921 from 3.0863/0909 at the previous close and slipped vis-a-vis the Thai baht to 12.5246/5541 from 12.4401/4637.
However, the ringgit appreciated against the Indonesian rupiah to 233.1/233.7 from 233.7/234.2 yesterday and firmed versus the Philippine peso to 6.72/6.74 from 6.75/6.76.
