KUALA LUMPUR: The ringgit appreciated against most major and regional currencies on Friday, although it declined against the US dollar.
This move was influenced by rising crude oil prices and expectations of a potential interest rate hike by the United States Federal Reserve (Fed), which bolstered the greenback.
At 6 pm, the local currency depreciated to 4.0685/0725 against the greenback from Thursday’s close of 4.0630/0670.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said external developments, particularly the sharp rise in crude oil prices, following the intensification of the conflict involving the US, Israel and Iran, continued to influence market sentiment.
"Heightened geopolitical tensions had pushed Brent crude oil prices higher to around US$104.64 per barrel.
"At the same time, expectations of an interest rate hike by the Fed have also shaped sentiment in the foreign exchange market, helping to support the value of the US dollar,” he told Bernama.
Mohd Afzanizam said market attention would now turn to the Fed’s interest rate decision and its latest economic projections, including forecasts for gross domestic product growth, inflation, unemployment and the federal funds rate.
At the close, the ringgit traded higher against a basket of major currencies.
It strengthened against the euro to 4.7178/7225 from Thursday’s 4.7269/7315, appreciated against the Japanese yen to 2.6400/6428 from 2.6431/6459, and rose against the British pound to 5.4961/5015 from 5.5046/5100 previously.
The ringgit also traded higher against ASEAN currencies.
It strengthened against the Singapore dollar to 3.2091/2125 from 3.2113/2148, appreciated against the Thai baht to 12.3072/3241 from 12.3331/3497, and rose against the Indonesian rupiah to 231.0/231.3 from 231.5/231.8 yesterday.
Against the Philippine peso, it was unchanged at 6.49/6.50. - Bernama
