Ringgit ends higher amid Middle East conflict uncertainty

KUALA LUMPUR: The ringgit extended its gains today, closing higher against the US dollar as uncertainty surrounding the conflict in the Middle East weighed on the greenback.

SPI Asset Management managing partner Stephen Innes said investors are adopting a wait-and-see approach, as the next major market catalyst is expected to hinge more on developments in the Middle East conflict than on domestic factors.

“Investors are monitoring whether the emerging US-Iran peace narrative proves durable or fades back into another headline grind,” he told Bernama.

Additionally, Innes noted that stronger equity markets recouped some of this week’s losses, which has helped improve regional risk appetite.

Meanwhile, Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said the ringgit traded fairly stable today.

“The ongoing negotiation between the US and Iran remains the market’s focal point, with West Texas Intermediate and Brent crude dropping 2.47% and 2.39% to US$85.54 (RM347.08) per barrel and US$88.22 (RM357.95) per barrel, respectively,” he said.

At 6pm, the local note rose to 4.0555/4.0600 versus the greenback from yesterday’s close of 4.0650/4.0690.

At the close, the local currency was softer against a basket of major currencies.

It depreciated versus the Japanese yen to 2.5334/2.5364 from 2.5321/2.5347 at yesterday’s close, slipped against the British pound to 5.4429/5.4489 from 5.4325/5.4378 and fell vis-a-vis the euro to 4.6979/4.7031 from 4.6878/4.6924 previously.

The ringgit was also lower against regional peers.

It slid versus the Singapore dollar to 3.1602/3.1640 from 3.1556/3.1589 yesterday and was down against the Thai baht at 12.4105/12.4288 compared to 12.3331/12.3501 previously.

It also fell vis-a-vis the Indonesian rupiah to 227.0/227.4 from 225.9/226.2 yesterday and narrowed versus the Philippine peso to 6.67/6.68 from 6.62/6.63 previously.