KUALA LUMPUR: The ringgit ended marginally higher against the US dollar on Tuesday, supported by improving market sentiment amid expectations of a de-escalation of the US-Iran conflict.
At 6 pm, the local currency rose to 4.0540/0580 versus the greenback from Friday’s close of 4.0565/0610.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said this came as US President Donald Trump indicated that further strikes against Iran were unnecessary.
"The conclusion of the US midterm elections last week could also have a significant impact on the current administration's policies.
"The ringgit traded mostly within a narrow range against the US dollar today, fluctuating between RM4.0510 and RM4.0590. At 5.05 pm, the ringgit stood at RM4.0547, appreciating by 0.11 per cent from Friday’s close,” he told Bernama.
Mohd Afzanizam said the trend was in tandem with the decline in the US Dollar Index, which fell by 0.14 per cent to 101.51, while Brent crude oil prices continued their downward trend to US$89.89 per barrel.
"For now, expectations of a de-escalation of the war in Iran have been instrumental in driving market sentiment,” he added.
The ringgit traded lower against a basket of major currencies.
It eased against the Japanese yen to 2.5642/5669 from 2.5616/5646, depreciated vis-a-vis the euro to 4.5514/5559 from 4.5315/5365 and weakened against the British pound to 5.4425/4479 from 5.4304/4365 at Friday’s close.
The ringgit also traded lower against its ASEAN peers.
It slid against the Singapore dollar to 3.1726/1758 from 3.1657/1694, slipped against the Thai baht to 12.1337/1497 from 12.0898/1105, eased vis-a-vis the Indonesian rupiah to 224.4/224.7 from 224.2/224.6 and weakened against the Philippine peso to 6.44/6.45 from 6.43/6.44 previously. - Bernama
