The ringgit opened weaker against the US dollar but strengthened against major and regional currencies on Wednesday as demand for the greenback increased amid rising geopolitical tensions in West Asia, according to Bernama.
At 8am, the local currency traded at 4.0745/0830 against the US dollar, compared with Tuesday’s close of 4.0685/0735.
The softer performance against the greenback came after US military strikes against Iranian forces and the US Treasury Department’s decision to revoke a waiver on Iranian oil sales raised concerns over renewed market uncertainty.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said global financial markets were expected to remain in a risk-off mode following the latest developments.
“This suggests the ceasefire remains fragile, prompting a 6.13 per cent jump in Brent crude prices to US$76.40 per barrel,” he told Bernama.
Despite the pressure from the US dollar, the ringgit gained against a basket of major currencies at the opening.
It strengthened against the Japanese yen to 2.5092/5146 from 2.5179/5221 at Tuesday’s close, while improving against the British pound to 5.4378/4492 from 5.4668/4755.
The ringgit also appreciated against the euro, trading at 4.6453/6550 compared with 4.6696/6771 previously.
Against regional currencies, the ringgit continued to show resilience. It strengthened against the Singapore dollar to 3.1495/1563 from 3.1593/1648, while gaining against the Indonesian rupiah to 226.6/227.1 from 226.8/227.2.
The local currency also improved against the Thai baht, rising to 12.1965/2278 from 12.2545/2807, while remaining unchanged against the Philippine peso at 6.63/6.65.
