The ringgit opened slightly weaker against the US dollar on Monday as investors remained cautious over renewed geopolitical tensions in the Middle East and their potential impact on global markets, Bernama reported.
The local currency traded at 4.0710/0770 against the greenback at 8 am, compared with Friday’s close of 4.0695/0745.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said uncertainty surrounding shipping through the Strait of Hormuz, following continued exchanges between the US and Iran, has kept crude oil prices and US Treasury yields elevated.
“The US Dollar Index (DXY) is currently hovering at 100.952 points.
“As such, expect ringgit to trade sideways against the US dollar, oscillating around RM4.06 to RM4.08,” he said.
He added that market attention this week will centre on key US economic indicators, including the Consumer Price Index (CPI), Producer Price Index (PPI) and the University of Michigan Consumer Sentiment Index, alongside speeches by US Federal Reserve officials that could provide fresh signals on the direction of interest rates.
“All this will dictate the currency market trend this week,” he said.
Despite easing against the US dollar, the ringgit strengthened against most major currencies. It appreciated to 5.4490/4571 against the British pound from 5.4572/4639 at Friday’s close, rose to 4.6422/6490 against the euro from 4.6502/6559 and edged up to 2.5144/5182 against the Japanese yen from 2.5148/5181.
The local currency also gained against most ASEAN peers, strengthening to 3.1492/1541 against the Singapore dollar from 3.1520/1561 and improving to 12.2032/2278 against the Thai baht from 12.2101/2302. It was little changed against the Philippine peso at 6.61/6.63, while slipping marginally against the Indonesian rupiah to 225.3/225.7 from 225.2/225.6.
