KUALA LUMPUR: The ringgit opened higher today, climbing to the 3.94 level against the US dollar, supported by improved sentiment on expectations of diplomatic progress following reports of a possible second-round US-Iran talks.
At 8 am, the local currency strengthened to 3.9430/9510 against the greenback, from 3.9500/9545 at Tuesday’s close.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said, however, that the International Monetary Fund (IMF), in its latest forecast, projected global gross domestic product (GDP) growth to slow to 3.1 per cent and 3.2 per cent in 2026 and 2027, respectively, after expanding 3.4 per cent in 2025.
"The main risk is obviously the war in Iran, which could elevate the inflationary pressures, while increased defence spending may provide a boost to GDP, albeit momentarily, but it could risk diverting resources away from social needs.
"Be that as it may, the US Dollar Index declined 0.25 per cent to 98.121 points. Amid heightened uncertainties, the ringgit is likely to trade within a narrow range today,” he told Bernama.
At the opening, the ringgit traded mostly higher against a basket of major currencies.
It appreciated versus the euro to 4.6520/6614 from 4.6567/6620 and strengthened against the Japanese yen to 2.4828/4880 from 2.4847/4877 at Tuesday’s close, but weakened against the British pound to 5.3522/3631 from 5.3495/3556.
Meanwhile, the local currency also traded mostly higher against ASEAN currencies.
It rose against the Singapore dollar to 3.1023/1091 from 3.1053/1091, gained versus the Indonesian rupiah to 230.2/230.8 from 230.6/231.0 and improved vis-a-vis the Philippine peso to 6.58/6.60 from 6.59/6.61 previously.
The ringgit, however, declined against the Thai baht to 12.3211/3546 from 12.3183/3397 at yesterday’s close. - Bernama
