KUALA LUMPUR: The ringgit opened little changed against the US dollar but strengthened against major currencies on Tuesday, as market sentiment remained cautious ahead of US President Donald Trump’s deadline on the reopening of the Strait of Hormuz.
At 8 am, the local currency stood at 4.0245/0360 against the greenback, almost unchanged from Monday’s close of 4.0245/0320.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said ongoing negotiations between the United States and Iran offered some hope of de-escalation, but the situation remained highly fluid.
"Thus far, the US Dollar Index has hovered below the 100-point level, at around 99.981, while the US ISM services index fell to 54.0 in March from 56.1 previously, with the employment sub-index dropping to 45.2 from 51.8,” he told Bernama.
He added that the ringgit closed 0.10 per cent higher at 4.0282 against the US dollar on Monday.
"Amid the uncertainty, the ringgit is likely to trade within a narrow range of around 4.02 to 4.04 today,” he said.
At the open, the ringgit traded higher against a basket of major currencies.
It strengthened against the Japanese yen to 2.5200/5274 from 2.5241/5290 at Monday’s close, appreciated against the euro to 4.6443/6575 from 4.6483/6570, and rose versus the British pound to 5.3252/3404 from 5.3305/3404.
The local currency traded mixed against ASEAN currencies.
It rose against the Singapore dollar to 3.1317/1409 from 3.1346/1407 at Monday’s close and edged up against the Thai baht to 12.3504/3933 from 12.3831/4138.
It was little changed against the Indonesian rupiah at 236.2/237.0 from 236.2/236.8, and unchanged versus the Philippine peso at 6.70/6.73 compared with 6.70/6.72 previously. - Bernama
