KUALA LUMPUR: The ringgit extended its upward momentum, opening firmer on Monday against the US dollar and other major currencies, supported by improved risk sentiment following signs of easing geopolitical tensions.
At 8 am, the local note rose to 4.0430/0500 against the greenback from last Friday’s close of 4.0555/0600.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said news on the likely reopening of the Strait of Hormuz following the agreement between the United States and Iran on a peace deal to be signed on June 19 has boosted market sentiment.
"WTI and Brent crude oil prices have already fallen by more than four per cent, with Brent crude currently trading at US$83.83 per barrel.
"My sense is that the ringgit is moving towards the RM4.00 level against the US dollar. It may not happen immediately, but a sub-RM4.00 level would be consistent with the ringgit’s fair value given the prevailing macroeconomic conditions and the resilience of Malaysia’s economic growth,” he told Bernama.
At the opening, the local currency strengthened against a basket of major currencies.
It appreciated versus the Japanese yen to 2.5275/5320 from 2.5334/5364 at last Friday’s close, climbed against the British pound to 5.4374/4468 from 5.4429/4489 and improved vis-a-vis the euro to 4.6911/6992 from 4.6979/7031 previously.
The ringgit was also better against regional peers.
It gained versus the Singapore dollar to 3.1554/1611 from 3.1602/1640 last Friday and jumped against the Thai baht at 12.4015/4298 compared to 12.4105/4288 previously.
It also recovered vis-a-vis the Indonesian rupiah to 226.3/226.8 from 227.0/227.4 and was up versus the Philippine peso to 6.65/6.66 from 6.67/6.68 previously. - Bernama
