Ringgit eases against US dollar as Middle East tensions rise

KUALA LUMPUR: The ringgit opened higher against major currencies but eased against the US dollar on Wednesday as demand for the greenback strengthened amid escalating geopolitical tensions in the Middle East.

At 8am, the local currency weakened to 4.0745/4.0830 against the US dollar from Tuesday’s close of 4.0685/4.0735.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said global financial markets were expected to remain in risk-off mode following US military strikes against Iranian forces and the US treasury department’s decision to revoke a waiver on Iranian oil sales.

“This suggests the ceasefire remains fragile, prompting a 6.13% jump in Brent crude prices to US$76.40 per barrel,” he noted.

At the opening, the ringgit strengthened against a basket of major currencies.

It rose against the Japanese yen to 2.5092/2.5146 from 2.5179/2.5221 at Tuesday’s close, appreciated against the British pound to 5.4378/5.4492 from 5.4668/5.4755, and gained against the euro to 4.6453/4.6550 from 4.6696/4.6771.

The local currency also traded higher against most regional currencies.

It strengthened against the Singapore dollar to 3.1495/3.1563 from 3.1593/3.1648 at Tuesday’s close, appreciated against the Indonesian rupiah to 226.6/227.1 from 226.8/227.2, and gained against the Thai baht to 12.1965/12.2278 from 12.2545/12.2807.

It was unchanged against the Philippine peso at 6.63/6.65.