KUALA LUMPUR: The ringgit opened firmer against the US dollar and other major currencies on Monday, supported by a softer greenback amid lingering geopolitical tensions in West Asia.
At 8 am, the local currency strengthened to 4.0225/0425 against the US dollar, from Friday’s close of 4.0295/0350.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the US dollar weakened as cautious sentiment persisted following US President Donald Trump’s stance on targeting Iranian civilian infrastructure to ensure the reopening of the Strait of Hormuz.
He said elevated Brent crude prices, at US$110.47 per barrel, point to rising inflationary pressures in the months ahead, while business and consumer sentiment remain subdued.
"As such, we expect the USD/MYR pair to range between RM4.03 and RM4.05 in the near term, as the US Dollar Index (DXY) has risen 0.23 per cent to 100.259 points,” he told Bernama.
At the open, the ringgit traded higher against a basket of major currencies.
It strengthened against the Japanese yen to 2.5172/5299 from 2.5247/5285 at Friday’s close, appreciated versus the euro to 4.6299/6529 from 4.6513/6576, and gained against the British pound to 5.3041/3304 from 5.3326/3399.
The local currency also traded firmer against ASEAN currencies.
It rose against the Singapore dollar to 3.1235/1398 from 3.1341/1389 at Friday’s close and edged up against the Philippine peso to 6.67/6.72 from 6.68/6.71.
It also strengthened against the Indonesian rupiah to 236.8/238.2 from 237.2/237.7, and advanced versus the Thai baht to 12.2918/3631 from 12.3585/3841 previously. - Bernama
