Ringgit softens vs US dollar as markets await clearer signs of Iran war de‑escalation


KUALA LUMPUR: The ringgit weakened against the US dollar and other major currencies at Wednesday’s close on cautious sentiment as investors await clearer signs of de‑escalation in the Iran war.

At 6 pm, the local currency eased to 3.9620/9670 against the greenback from Tuesday’s close of 3.9530/9585.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said foreign markets appeared defensive as traders and investors eyed clearer signs of a de‑escalation in the West Asia conflict.  

 "The prevailing conditions were not unique to the ringgit, as regional currencies also depreciated against the greenback. Despite this, the US Dollar Index (DXY) remains below 100 points, currently hovering at around 99.348,” he told Bernama.

During the afternoon session, Mohd Afzanizam noted that the ringgit gradually weakened against the greenback, with the US dollar-ringgit pair moving from RM3.9450 at the start of the day to RM3.9635 by the afternoon.

The ringgit closed lower against a basket of other major currencies.

It fell versus the Japanese yen to 2.4935/4969 from 2.4916/4954 at Tuesday’s close, edged down against the British pound to 5.3087/3154 from 5.2982/3056, and depreciated vis-à-vis the euro to 4.5963/6021 from 4.5835/5899, previously.

The local currency also trended mostly lower against ASEAN currencies.

It dropped against the Singapore dollar to 3.0965/1007 from 3.0909/0955 and fell against the Indonesian rupiah to 234.2/234.6 from 233.9/234.3 at Tuesday’s close.

However, the ringgit was marginally higher versus the Thai baht at 12.1336/1557 from 12.1373/1613, and was unchanged vis-à-vis the Philippine peso at 6.59/6.60 from 6.59/6.61 previously. - Bernama

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