The ringgit opened slightly lower against the US dollar on Monday as traders remained cautious amid ongoing geopolitical tensions in West Asia, while the local currency strengthened against most major currencies.
At 8am, the ringgit eased to 4.1350/1445 against the greenback from Friday’s close of 4.1340/1395.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said market participants were closely monitoring developments surrounding US-Iran negotiations, which continue to influence global risk sentiment.
“Recent reports indicate that millions of barrels of oil continued to pass through the Strait of Hormuz over the weekend, suggesting that concerns over disruptions to crude oil and liquefied natural gas supplies may be easing despite ongoing tensions,” he said.
He added that investors are also awaiting the release of the US Federal Reserve’s preferred inflation measure, the Personal Consumption Expenditures (PCE) index, scheduled for Thursday.
According to Mohd Afzanizam, the ringgit is expected to trade within a narrow range against the US dollar as market sentiment remains cautious.
Meanwhile, global oil prices continued to rise, with West Texas Intermediate (WTI) crude climbing 2.43 per cent to US$77.69 per barrel, while Brent crude gained 1.28 per cent to US$81.60 per barrel.
Against other major currencies, the ringgit strengthened versus the Japanese yen to 2.5613/5674 from 2.5636/5671 at Friday’s close and appreciated against the British pound to 5.4619/4745 from 5.4709/4782.
However, the local currency edged lower against the euro, trading at 4.7404/7513 compared with 4.7376/7439 previously.
The ringgit was mixed against regional currencies. It strengthened against the Singapore dollar to 3.1992/2071 from 3.2019/2064 and gained against the Thai baht to 12.5503/5850 from 12.5856/6074.
The local note was little changed against the Indonesian rupiah at 232.2/232.8 from 232.2/232.5 previously and remained steady against the Philippine peso at 6.80/6.82.
