KUALA LUMPUR: The ringgit strengthened to the 3.99 level against the US dollar, supported by improved market sentiment after US President Donald Trump announced a two-week pause in military action against Iran following talks with Pakistani leaders.
At 8 am, the local currency rose 0.67 per cent to 3.9975/4.0050 against the greenback, compared with Tuesday’s close of 4.0275/0320.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said Trump had agreed to a two-week truce, describing the move as a "double-sided ceasefire”.
At the time of writing, Brent crude prices fell 15.70 per cent to US$92.12 per barrel, and the US Dollar Index (DXY) declined 0.35 per cent to 99.635 points.
"Perhaps that could provide some temporary respite to market sentiments amid heightened economic uncertainties following the shock from the war in Iran,” he told Bernama.
ALSO READ: Ringgit closes nearly flat versus greenback
At the opening, the ringgit strengthened against the Japanese yen to 2.5187/5238 from 2.5229/5258 at Tuesday’s close. It depreciated against the euro to 4.6719/6806 from 4.6566/6618, and eased versus the British pound to 5.3570/3671 from 5.3425/3484.
The local currency traded mostly higher against ASEAN currencies.
It rose against the Singapore dollar to 3.1331/1392 from 3.1381/1419 at Tuesday’s close, appreciated against the Indonesian rupiah to 233.6/234.2 from 235.4/235.8, and rose against the Philippine peso to 6.63/6.64 from 6.68/6.69 previously.
It was lower against the Thai baht to 12.4572/4879 from 12.3809/4021. - Bernama
