KUALA LUMPUR: The ringgit jumped 135 basis points to rebound to the 3.96 level against the US dollar at the opening today, supported by improved global risk sentiment amid expectations of a potential second-round negotiation between the US and Iran.
At 8 am, the ringgit appreciated to 3.9600/9715 against the US dollar from 3.9735/9805 at Monday’s close.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said recent developments in the global oil market, following the news that there will be another second-round negotiation between the US and Iran in the near term, have dragged West Texas Intermediate (WTI) and Brent crude oil prices to fall below US$100 per barrel.
"The news sparked hope that an amicable solution could be achieved, although it can also be elusive,” he told Bernama.
On the US dollar, which is deemed a safe-haven currency, Mohd Afzanizam said the two- and 10-year US Treasury yields fell by two basis points to 3.77 per cent and 4.29 per cent, respectively. In the same vein, the US Dollar Index (DXY) declined 0.23 per cent to 98.425 points.
"In that sense, there appears to be a risk-on mode, although that may be quite tentative given the evolving nature of the negotiations.
"Ringgit might stage a slight rebound but should remain in a narrow range of RM3.96 to RM3.98 today,” he added.
Despite trading firmer against the greenback, the ringgit was mostly lower against a basket of major currencies at the opening, except against the Japanese yen.
It fell against the British pound to 5.3515/3671 from 5.3360/3454 and weakened against the euro to 4.6589/6725 from 4.6434/6516.
Against the Japanese yen, it rose to 2.4867/4940 from 2.4875/4920 at Monday’s close.
At the same time, the local currency traded mostly higher against ASEAN currencies, except against the Thai baht.
It increased versus the Singapore dollar to 3.1105/1205 from 3.1145/1205, was higher against the Indonesian rupiah to 231.5/232.3 from 232.2/232.8 and gained against the Philippine peso to 6.58/6.60 from 6.60/6.62 at Monday’s close.
The local note depreciated against the Thai baht to 12.3623/4071 from 12.3202/3503. - Bernama
