The ringgit opened firmer against the US dollar and most major currencies today, supported by a slight retreat in the US Dollar Index (DXY) amid signs of easing geopolitical tensions in West Asia.
At 8 am, the local currency strengthened to 4.0665/0780 against the greenback, compared with Monday’s close of 4.0715/0760.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the DXY edged lower to 99.98 points as Iran and Israel appeared to be moving towards de-escalating military strikes, although the situation remained fluid.
“Market sentiment is expected to remain cautious ahead of the release of the US Consumer Price Index (CPI) data tomorrow.
“Given the ongoing conflict and its potential impact on fuel prices, coupled with the stronger-than-expected non-farm payrolls (NFP) data last week, the Federal Reserve is likely to maintain its restrictive monetary policy stance,” he said.
The ringgit traded mostly higher against a basket of major currencies.
It appreciated against the British pound to 5.4219/4372 from 5.4249/4309 and strengthened against the Japanese yen to 2.5385/5459 from 2.5445/5475. However, it eased against the euro to 4.6879/7011 from 4.6867/6919 at Monday’s close.
Against regional currencies, the local note also posted gains.
The ringgit rose against the Singapore dollar to 3.1548/1639 from 3.1577/1614, strengthened versus the Thai baht to 12.3639/4049 from 12.3942/4128, and improved against the Philippine peso to 6.59/6.61 from 6.60/6.61 previously.
It also advanced against the Indonesian rupiah to 223.5/224.3 from 223.8/224.2 at yesterday’s close.
