The ringgit extended its gains to close higher against the US dollar today, as ongoing uncertainty surrounding the Middle East conflict continued to pressure the greenback.
Market sentiment remained cautious, with investors adopting a wait-and-see approach amid geopolitical developments.
SPI Asset Management managing partner Stephen Innes said the next key market driver is likely to depend on developments in the Middle East rather than domestic factors.
“Investors are monitoring whether the emerging US-Iran peace narrative proves durable or fades back into another headline grind,” he told Bernama.
He added that stronger equity markets, which recovered some of this week’s losses, helped improve regional risk appetite.
Meanwhile, Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said the ringgit remained relatively stable during the session.
“The ongoing negotiation between the US and Iran remains the market’s focal point, with West Texas Intermediate and Brent crude declining 2.47% and 2.39% to US$85.54 (RM347.08) and US$88.22 (RM357.95) per barrel respectively,” he said.
At 6pm, the ringgit stood at 4.0555/4.0600 against the US dollar, strengthening from 4.0650/4.0690 at yesterday’s close.
Against a basket of major currencies, the local note was mostly weaker at the close.
It fell against the Japanese yen to 2.5334/2.5364 from 2.5321/2.5347, slipped versus the British pound to 5.4429/5.4489 from 5.4325/5.4378, and declined against the euro to 4.6979/4.7031 from 4.6878/4.6924.
The ringgit also weakened against regional currencies, including the Singapore dollar at 3.1602/3.1640, the Thai baht at 12.4105/12.4288, the Indonesian rupiah at 227.0/227.4, and the Philippine peso at 6.67/6.68.
