KUALA LUMPUR: The ringgit closed marginally higher against the US dollar today as optimism over a potential West Asia ceasefire improved risk appetite.
At 6 pm, the local note strengthened to 4.0245/0320 against the greenback from 4.0295/0350 at Friday’s close.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said it was reported that the United States, Iran, and mediators are hatching plans for a 45-day ceasefire that would allow the reopening of the Strait of Hormuz.
"The details remain sketchy, but it seems that the news has boosted some form of optimism in the financial markets,” he told Bernama.
Mohd Afzanizam said last Friday’s US non-farm payrolls (NFP) for March came in stronger than expected at 178,000, but the data remained volatile as February’s contraction widened from 92,000 to 133,000.
"Meanwhile, the US labour force participation rate (LFPR) declined for a fourth consecutive month to 61.9 per cent, suggesting fewer Americans are participating in the labour market, signalling a possible weakening trend that could support the case for the Federal Reserve to ease monetary policy later this year,” he said.
At the close, the ringgit traded higher against a basket of major currencies.
It appreciated against the Japanese yen at 2.5241/5290 from last Friday’s close of 2.5247/5285, improved vis-a-vis the euro to 4.6483/6570 from 4.6513/6576, and elevated against the British pound to 5.3305/3404 from 5.3326/3399.
At the same time, the local currency traded mostly lower against ASEAN currencies.
It was marginally lower versus the Singapore dollar at 3.1346/1407 from 3.1341/1389 at the close last Friday, edged down against the Philippine peso to 6.70/6.72 from 6.68/6.71, and slipped against the Thai baht to 12.3831/4138 from 12.3585/3841 previously.
However, it rose versus the Indonesian rupiah to 236.2/236.8 from 237.4/237.9 last week. - Bernama
