KUALA LUMPUR: The ringgit opened marginally higher against the greenback and other major currencies on Tuesday, amid negotiations between the United States (US) and Iran that could end the conflict and lead to the reopening of the Straits of Hormuz.
At 8 am, the local currency strengthened to 3.9500/9560 against the greenback from Monday’s close of 3.9510/9550.
US President Donald Trump reportedly said the negotiations are “proceeding nicely”, while Pakistan’s military chief informed China that an agreement is “close to being reached”.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that although there appears to be optimism that both countries could reach a compromise, nothing concrete has materialised.
“In the meantime, the impact on the cost of living and the need for global central banks to maintain their restrictive monetary policy stance is taking a toll on the bond market by way of rising yields.
“In a nutshell, the outlook is still blurry, and traders are likely to remain wary of the impact on the real economy,” Mohd Afzanizam told Bernama.
He added that the ringgit is expected to trade sideways at around RM3.94-RM3.95 today, as market participants await more details on the ongoing US-Iran negotiation.
At the opening, the ringgit traded higher against a basket of major currencies.
It strengthened versus the Japanese yen to 2.4847/4887 from 2.4860/4887 at Monday’s close, appreciated against the euro to 4.5958/6028 from 4.5998/6044 yesterday, and improved vis-a-vis the British pound to 5.3301/3382 from 5.3311/3365 previously.
The local currency was mostly higher against regional peers, but was flat versus the Indonesian rupiah at 222.6/223.0.
It rose versus the Singapore dollar to 3.0917/0967 from 3.0932/0966 at yesterday’s closing, edged higher against vis-a-vis the Philippine peso at 6.42/6.44 from 6.43/6.44 and increased versus the Thai baht to 12.1445/1704 from 12.1640/1816 at Monday’s close. – BERNAMA
