KUALA LUMPUR: The ringgit closed higher yesterday, strengthening against major currencies but easing against the US dollar as persistent geopolitical tensions in West Asia boosted demand for the safe-haven greenback, says an analyst.
At 6pm, the local currency eased to 4.0750/0800 against the US dollar from Tuesday’s close of 4.0685/0735.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid told Bernama that crude oil prices rose substantially following the United States military attacks against Iranian forces on Wednesday.
He noted that the US government’s decision to revoke the waiver on Iranian oil sales underscores the fragility of the ceasefire agreement.
This raises concerns that renewed tensions could heighten the risk of closing the Strait of Hormuz, which is a crucial global oil shipping route.
At the time of writing, benchmark Brent crude for the September contract is trading 5.68% higher at US$78.28 per barrel. — Bernama
