Ringgit higher at opening amid ongoing geopolitical tensions

KUALA LUMPUR: The ringgit opened higher against the US dollar and a basket of major currencies on Monday despite a strong US Dollar Index (DXY) as ongoing geopolitical tensions, with the United States' (US) involvement in the Israel-Iran conflict, in focus, said an analyst.
At 8 am, the local note rose to 4.2420/2655 against the greenback from Friday's close of 4.2505/2565.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said there are fears of a wider conflagration in the region as the US announced "successful" airstrikes on three Iranian nuclear sites.
"The focus is clearly on how it might impact crude oil prices and risk sentiment.
"Brent Crude oil prices rallied by 2.49 per cent to US$78.93 per barrel, the highest since January 2025 with concerns over Iranian retaliation and (the possibility that it) might use the Straits of Hormuz choke point as leverage in the prevailing conflict," he told Bernama.
Mohd Afzanizam also said the ringgit could depreciate against the US dollar due to the defensive mode among traders.
He said there could be a risk-off mode in the currency market,as the US DXY has risen to 98.937 points, while precious commodities, such as spot gold, were up by 0.27 per cent to US$3,377.42 per ounce.
At the opening, the ringgit traded higher against a basket of major currencies.
It trended higher against the Japanese yen at 2.9023/9186 from 2.9245/9289 at Friday's close, rose versus the British pound to 5.7000/7316 from 5.7356/7437, and inched up against the euro to 4.8800/9070 from 4.9000/9069 previously.
The local note also traded firmer against its ASEAN counterparts.
It appreciated against the Singapore dollar to 3.2948/3133 from 3.3088/3140 at Friday's close, climbed to 12.9243/13.0042 from 12.9727/9969 versus the Thai baht, advanced vis-a-vis the Indonesian rupiah to 258.6/260.2 from 259.2/259.7 and gained against the Philippine peso to 7.42/7.46 from 7.43/7.45. - Bernama

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Barnama

27 minutes ago

• Barnama

Rubber Market Ends Lower On Weak Regional Cues, Middle East Tensions

She noted that market sentiment was further dampened by the global economic uncertainty stemming from the escalating conflict in the Middle East, mixed benchmark crude oil prices, and weak Chinese economic data. KUALA LUMPUR, June 23 (Bernama) -- The Malaysian rubber market ended lower today, weighed down by weaker cues from regional rubber markets, said a dealer. 'Asian stocks fell on Monday as risk appetite was battered by the United States' (US) attack on Iran's nuclear sites over the weekend, marking a potentially dire escalation in the Middle Eastern conflict,' she told Bernama. She added that Brent crude oil prices rose sharply in early Asian Trade on Monday, as the US strike heightened fears of supply disruption, although crude pared some of its early gains later in the day. On another note, China's Fiscal revenue fell 0.3 per cent year-on-year in the first five months of 2025, amid mounting economic pressure from US tariffs and global trade uncertainties.

Barnama

27 minutes ago

• Barnama

KLCI Futures Lower In Early Trade

KUALA LUMPUR, June 23 (Bernama) -- FTSE Bursa Malaysia KLCI (FBM KLCI) futures on Bursa Malaysia Derivatives were lower in early trade on Monday, tracking the underlying cash market. At 9.28 am, the June 2025 and July 2025 contracts dropped 8.0 points to 1,488.0 and 1,486.0, respectively. September edged 7.0 points lower to 1,468.0, and December 2025 fell 9.5 points to 1,470.50. Turnover stood at 3,423 lots, with open interest at 40,823 contracts.

Barnama

28 minutes ago

• Barnama

Ballot Draw System Boosts Bumiputera Contractor Standards, Marketability

KUCHING, June 23 (Bernama) -- The ballot draw programme for G1 to G4 contractors, introduced by the Works Ministry since 2020, has raised the standards, capabilities, competitiveness and marketability of Bumiputera contractors. Works Minister Datuk Seri Alexander Nanta Linggi said good procedures would yield good outcomes, and the initiative will be continued with improvements from year to year. 'The ballot draw process is a transparent and fair mechanism to select contractors from among qualified and competent companies with strong track records. 'This reflects the MADANI government's ongoing commitment through the MADANI pillars of Sustainability, Innovation and Trust in empowering and strengthening the local Bumiputera contractor economy,' he said at the ballot draw ceremony for the 2025 Federal Road Periodic Maintenance Contract in Sarawak for G1-G4 contractors here today. Nanta said the awarding of contracts was not merely about executing work, but a trust that requires strong commitment to ensure road maintenance is carried out according to specifications, for the safety of road users. He said contractors must ensure good and systematic contract management with a clear understanding of contract contents, including work specifications, implementation schedules and reporting requirements. 'Secondly, practise efficient work and resource management. This includes well-structured work scheduling, effective workforce management, and optimal use of resources such as machinery and raw materials. 'And thirdly, prioritise sound financial management. Many contractors in the construction and maintenance sector face problems due to weaknesses in project and financial management,' he said. Nanta said failure by contractors to fulfil their responsibilities could result in the public bearing the consequences, especially due to poorly maintained roads that do not meet contractual specifications