KUALA LUMPUR: The ringgit opened higher against the US dollar and major currencies on Thursday, supported by optimism that geopolitical tensions may be easing, although the broader market tone remains guarded.
At 8 am, the local currency rose to 4.0170/0370 against the greenback from yesterday’s close of 4.0240/0295.
IPPFA Sdn Bhd director of investment strategy and country economist, Mohd Sedek Jantan said the focus is now on United States President Donald Trump, who is set to address the nation at 9 am Malaysian time, with expectations that he will indicate the winding down of the conflict in West Asia.
"Markets will be looking for clarity on de-escalation terms, and most critically, the reopening of the Strait of Hormuz, which remains central to global energy flows and overall market,” he told Bernama.
He opined that a softer dollar alongside firm gold prices suggests that investors are still favouring safe-haven assets over a full return to risk, indicating that confidence is tentative rather than decisive.
Meanwhile, the ringgit opened higher against a basket of major currencies.
It strengthened against the British pound to 5.3430/3696 from 5.3507/3580 at the close on Wednesday, improved versus the Japanese yen to 2.5309/5436 compared with 2.5358/5394 at yesterday’s close and gained vis-à-vis the euro to 4.6553/6785 from 4.6666/6730 previously.
At the same time, the local currency traded mostly higher against ASEAN currencies.
It went up versus the Singapore dollar to 3.1305/1465 from 3.1369/1414 at Wednesday’s close, inched up against the Philippine peso to 6.67/6.71 from 6.68/6.69 yesterday, and climbed versus the Indonesian rupiah to 236.5/237.8 from 236.9/237.3 previously.
However, it slid to 12.3126/3823 against the Thai baht from yesterday’s closing of 12.2726/2926. - Bernama
