KUALA LUMPUR: The ringgit strengthened to close at 3.97 against the US dollar today, as optimism returned following a two-week ceasefire between the United States and Iran in the West Asia conflict.
At 6 pm, the local note appreciated to 3.9735/9785 against the US dollar from 4.0275/0320 at Tuesday’s close, marking a return to below the 4.00 psychological level, with a day-to-day appreciation of 1.31 per cent.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said US President Donald Trump had announced a two-week pause in military action against Iran following mediation efforts from Pakistani leaders.
"The ringgit’s stronger performance was also supported by prospects of the reopening of the Strait of Hormuz, which could help stabilise global oil supply and ease pressure on energy prices.
"These developments could provide some temporary respite to the market amid heightened economic uncertainties following the shock from the conflict in West Asia,” he told Bernama.
While uncertainties remain high, Mohd Afzanizam said that Iran’s willingness to budge is a positive signal for future negotiations.
At the close, the ringgit traded higher against a basket of major currencies.
It rose against the euro to 4.6407/6465 from 4.6566/6618, appreciated against the British pound to 5.3348/3415 compared with 5.3425/3484, and rose against the Japanese yen to 2.5071/5104 from 2.5229/5258 from yesterday’s close.
At the same time, the local currency traded mostly higher against ASEAN currencies.
It was higher versus the Singapore dollar, at 3.1155/1199 from 3.1381/1419, and appreciated against the Indonesian rupiah to 233.5/233.9 from 235.4/235.8.
Meanwhile, the ringgit was almost unchanged versus the Philippine peso at 6.68/6.70 and slid against the Thai baht to 12.4056/4282 from 12.3809/4021 previously. - Bernama
