KUALA LUMPUR: The ringgit opened higher against major currencies but eased against the US dollar this morning as cautious global sentiment continued to weigh on emerging market currencies.
At 8 am, the local currency softened to 3.9300/9400 against the greenback from Wednesday’s close of 3.9145/9205.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the ringgit was pressured by heightened global uncertainties, particularly geopolitical tensions and the outlook for US monetary policy.
"The US Federal Reserve (Fed) chairman Jerome Powell indicated that risks associated with the war in Iran remain uncertain, while new US import tariffs are expected to have an inflationary impact,” he told Bernama.
Meanwhile, he said Fed staff have raised their 2026 inflation forecast from 2.4 per cent to 2.7 per cent, while the Fed Funds Rate is projected at 3.4 per cent, implying one rate cut for the year.
Mohd Afzanizam added that Brent crude oil prices have surged to around US$111 per barrel amid intensifying conflict in Iran, further contributing to market volatility.
"In short, the degree of economic uncertainty has escalated, and risk-off sentiment will likely continue to dominate financial markets.
"As such, the ringgit is likely to maintain its narrow trading range of around RM3.90 to RM3.93 today,” he added.
The ringgit was higher against a basket of other major currencies.
It appreciated versus the Japanese yen to 2.4590/4654 from 2.4627/4668 at Wednesday’s close, climbed against the British pound to 5.2128/2260 from 5.2290/2370 yesterday, and strengthened vis-à-vis the euro to 4.5046/5160 from 4.5166/5235.
However, the local currency traded mixed against ASEAN currencies.
It rose versus the Thai baht to 11.9729/12.0122 from 12.0878/12.1130 at Wednesday’s close and improved against the Singapore dollar to 3.0617/0700 from 3.0668/0718 yesterday.
The ringgit softened vis-a-vis the Indonesian rupiah to 232.0/232.7 from 231.0/231.6 at the previous close, and fell versus the Philippine peso to 6.60/6.62 from 6.57/6.59. - Bernama
