The ringgit opened higher against the US dollar, supported by easing Brent crude oil prices and ongoing U.S.-Iran geopolitical developments
KUALA LUMPUR: The ringgit opened higher against the US dollar on Wednesday, supported by easing Brent crude oil prices and geopolitical concerns.
At 8 am, the ringgit rose to 4.0680/0765 against the greenback from Tuesday’s close of 4.0730/0775.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said prevailing crude oil prices were supportive of the foreign exchange market, with Brent crude hovering below US$100 per barrel at US$99.25.
“The meeting between the United States (US) and Iranian officials during the United Nations General Assembly was described as ‘very good’ according to US President Donald Trump, raising hope for some progress towards a peace deal, although it remains fluid.
“Meanwhile, there was no clear indication from the US Federal Reserve officials on the direction of monetary policy,” he told Bernama.
Mohd Afzanizam added that, based on Federal Funds futures contracts, the odds of a rate hike in October and December were more than 50 per cent, suggesting the market expects two more rate hikes this year.
As such, the ringgit should stay in a narrow range trade today, he noted.
At the opening, the ringgit traded higher against a basket of major currencies.
It gained against the euro to 4.6566/6664 from 4.6705/6757 at Tuesday’s close, advanced vis-a-vis the British pound to 5.4275/4389 from 5.4452/4512, and appreciated against the Japanese yen to 2.5830/5886 from 2.5958/5988 previously.
The local note was mostly higher against its ASEAN peers.
It firmed against the Singapore dollar to 3.1901/1970 from 3.1955/1993 at Tuesday’s close and gained versus the Thai baht to 12.2826/3142 from 12.2847/3035.
The ringgit inched up against the Indonesian rupiah to 227.4/228.0 from 227.7/228.0, but was slightly lower against the Philippine peso to 6.48/6.50 from 6.49/6.50.
