KUALA LUMPUR: The ringgit weakened against the US dollar and other currencies at Thursday’s close as uncertainties over the conflict in West Asia triggered a risk-off mode in financial markets.
At 6 pm, the local currency fell to 3.9920/9955 versus the greenback from yesterday’s close of 3.9620/9670.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said signs of de-escalation remained elusive, with the Iranian government rejecting peace talks despite US insistence.
"The demands from the Iranian government, including reparations for damages following the US-Israel attack on its soil, guarantees against further military assaults, and recognition of its authority over the Strait of Hormuz, appear to be a tall order.
"Hence, sentiment in the foreign exchange market is likely to remain cautious in the near term, as countries across Asia grapple with fuel shortages,” he told Bernama.
As such, Mohd Afzanizam said, the ringgit is expected to continue its depreciation against the greenback as geopolitical uncertainties keep investors in a risk-off mode.
The ringgit closed lower against a basket of other major currencies.
It decreased versus the Japanese yen to 2.5025/5049 from 2.4935/4969 at Wednesday’s close, slid against the British pound to 5.3301/3348 from 5.3087/3154 yesterday and depreciated vis-à-vis the euro to 4.6140/6180 from 4.5963/6021 previously.
The local currency also traded weaker against ASEAN currencies.
It fell versus the Singapore dollar to 3.1102/1132 from 3.0965/1007 at the previous close, declined versus the Thai baht to 12.1529/1695 from 12.1336/1557 yesterday, eased vis-a-vis the Indonesian rupiah to 236.1/236.4 from 234.2/234.6 previously and softened against the Philippine peso to 6.62/6.63 from 6.59/6.60. - Bernama
