KUALA LUMPUR: The ringgit weakened against the US dollar and other currencies at yesterday’s close as uncertainties over the conflict in West Asia triggered a risk-off mode in financial markets.
At 6pm, 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.
