Ringgit closes lower against US dollar amid Middle East uncertainty
KUALA LUMPUR — The ringgit closed lower against the greenback on Monday as US involvement in the war between Israel and Iran spurred demand for safe haven assets like the American dollar, an analyst said.
The United States bombed Iran's nuclear facilities on Sunday.
At 6 pm, the local note slid to 4.2915/2980 versus the greenback from last Friday's close of 4.2505/2565.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the US Dollar Index (DXY) was 0.25 per cent higher at 98.958 points as heightened geopolitical risks in the Middle East have led to cautious sentiments among traders. He said Brent crude prices stayed elevated as the Iranian parliament approved a measure to close the Strait of Hormuz, which will disrupt oil supplies from the Middle East if the closure actually happens, but ultimately, the decision will come down to Iran's top leaders.
At the time of writing, the Brent crude oil price rose 0.77 per cent to US$77.48 per barrel.
'Immediately, traders and investors are observing the dynamics of the Israel-Iran standoff and whether it would escalate into a new trajectory,' he told Bernama.
At the close, the ringgit traded mostly lower against a basket of major currencies.
It appreciated against the Japanese yen to 2.9028/9074 from 2.9245/9289 at last Friday's close, but slipped versus the British pound to 5.7437/7524 from 5.7356/7437 and declined vis-à-vis the euro to 4.9236/9311 from 4.9000/9069 previously.
The ringgit also performed mostly lower against its ASEAN peers.
The local note was marginally lower versus the Philippine peso at 7.44/7.46 from 7.43/7.45 last Friday, and inched down versus the Indonesian rupiah to 260.2/260.7 from 259.2/259.7 previously.
It also weakened vis-à-vis the Thai baht to 12.9998/13.0250 from 12.9727/9969 last Friday and depreciated against the Singapore dollar to 3.3188/3243 from 3.3088/3140 at the previous close. — BERNAMA
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
35 minutes ago
- The Star
US announces up to $5 million reward for information on Afghan-American taken by Taliban
WASHINGTON (Reuters) -The U.S. on Monday announced a reward of up to $5 million for information leading to the location and release of Mahmoud Habibi, an Afghan-American businessman who was detained by the Taliban's intelligence service on August 10, 2022. A former civil aviation chief under Afghanistan's ousted Western-backed government, Habibi and his driver were seized along with 29 other employees of the Kabul telecommunications firm for which he worked, said a State Department notice. All except Habibi and one other person were subsequently released. "Mr. Habibi has not been heard from since his initial arrest and the so-called Taliban government has yet to provide any information regarding his whereabouts or condition," said the notice issued by the department's Rewards for Justice program. "Rewards for Justice is offering a reward of up to $5 million for information leading to the location, recovery, and return of" Habibi, it said. The Taliban, who seized Kabul as the last U.S. troops pulled out in August 2021 after a 20-year war, deny holding Habibi. (Reporting by Jonathan Landay)
Barnama
2 hours ago
- Barnama
IPPTAR Plays Role In Shaping Gen Z As Ethical Communicators
GENERAL KUALA LUMPUR, June 23 (Bernama) – The Tun Abdul Razak Broadcasting and Information Institute (IPPTAR) plays a key role in shaping the new generation—referred to as Gen Z—to become ethical communicators, said its Director, Roslan Ariffin. He said that in pursuit of this goal, emphasis and guidance on communication ethics must be nurtured from an early stage in tandem with the advancement of digital technology, so that the voices of the new generation become a positive force in communication. 'Today's generation is incredibly fast—everything is fast, speech is fast, WhatsApp is fast—and their voices and ways of connecting transcend boundaries… so we need to give them proper guidance and emphasis, with the hope that they communicate ethically. 'This also aligns with the theme of IPPTAR's Open Day celebration tomorrow, which is 'Suara Generasi, Kuasa Komunikasi (Voice of the Generation, Power of Communication),' he said when appearing as a guest on BERNAMA TV's Ruang Bicara programme tonight. Commenting further, Roslan said that IPPTAR Open Day, now in its second year, serves as a platform to attract young people to come and learn more about the institute. 'The content we have prepared is largely aimed at drawing in this group, most of whom today aspire to be influencers—but to become influencers, they must first be good communicators. 'By getting to know IPPTAR, they may one day come to regard it with affection and pride as an institution that educates and trains them in the world of communication,' he said. He added that in facing the latest technologies, including the explosion of artificial intelligence (AI), IPPTAR continues to progress and evolve to become a leading training institution in the field of communication to meet current needs. In conjunction with IPPTAR Open Day 2025 tomorrow, the public will have the opportunity to explore and understand AI technology and its significance to the media and broadcasting industry, in addition to participating in various engaging activities.
Malaysia Sun
2 hours ago
- Malaysia Sun
Oil flip-flops, dollar firms after US hits Iran nuclear facilities
The dollar strengthened and oil prices pulled back from their early gains on Monday after the US struck Irans nuclear facilities at the weekend. Asian markets, however, retreated while European stocks were slightly higher as traders nervously awaited Irans response. Oil pricesgave up most of their early gains on Monday and the dollar strengthenedafter the United States struck Iran's nuclear facilities at the weekend. Asian marketsmostly retreated while European bourses were marginally higher as traders wait to see how Tehran could respond. Read moreIran vows US will 'receive a response' after strikes on nuclear sites "Everything hinges onIran's response and whether it's a symbolic jab or a haymaker that knocks theStrait of Hormuzoffline," said Stephen Innes at SPI Asset Management. One option on the table would be to potentially create economic havoc by seeking to close the strategic Strait of Hormuz -- which carries one-fifth of global oil output. Iran is the world's ninth-biggest oil-producing country, with output of about 3.3 million barrels per day. Itexportsjust under half of that amount and consumes the rest. Read more'Dangerous escalation': World leaders call for return to diplomacy after US strikes on Iran When trading opened on Monday, Brent and the main US crude contract WTI both jumped more than four percent to hit their highest price since January. They pared these gains however and briefly dipped into the red before recovering totradeslightly higher. "So far, satellite images reportedly suggest that oil continues to flow through the Strait, which may explain the muted market reaction to the news," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank. "Many remain optimistic that Iran will avoid a full-blown retaliation and regional chaos, to prevent its own oil facilities from becoming targets and to avoid a widening conflict that could hurtChinaits biggest oil customer." But "if things get uglier" the price of US crude could even spike beyond $100 per barrel, she said. WTI was trading around $74 per barrel on Monday. 'Extreme route' "An oil price shock would create a real negative impact on most Asian economies" as many are big net energy importers, economists at MUFG warned. Tokyo,Seoul, Sydney,Singapore, Taipei, Manila, Bangkok and Jakarta were all lower. Hong Kong, Shanghai and Kuala Lumpur were the only gainers in Asia. InEuropean marketsLondonand Frankfurt ticked marginally higher whilePariswas flat. Read moreRussia and China push for a ceasefire as UN Security Council meets on Iran The dollar rose against other currencies but analysts questioned to what extent this would hold out. "If the increase proves to be just a knee-jerk reaction to what is perceived as short-lived US involvement in the Middle-East conflict, the dollar's downward path is likely to resume," said Sebastian Boyd, markets live blog strategist at Bloomberg. Chris Weston at Pepperstone said Iran would be able to inflict economic damage on the world without taking the "extreme route" of trying to close the Strait of Hormuz. "By planting enough belief that they could disrupt this key logistical channel, maritime costs could rise to the point that it would have a significant impact on the supply of crude and gas," he wrote. At the same time, "while Trump's primary focus will be on theMiddle East, headlines on trade negotiations could soon start to roll in and market anxieties could feasibly build". Key figures at around 0900 GMT Brent North Sea Crude: UP 0.2 percent at $77.14 per barrel WestTexasIntermediate: UP 0.1 percent at $73.94 per barrel Tokyo -Nikkei225: DOWN 0.1 percent at 38,354.09 (close) Hong Kong- Hang Seng Index: UP 0.7 percent at 23,689.13 (close) Shanghai - Composite: UP 0.7 percent at 3,381.58 (close) London - FTSE 100: UP 0.1 percent at 8,800.5 Euro/dollar: DOWN at $1.1458 from $1.1516 on Friday Pound/dollar: UP at $1.3445 from $1.3444 Dollar/yen: UP at 147.94 yen from 146.13 yen Euro/pound: DOWN at 85.65 pence from 85.66 pence New York- Dow: UP 0.1 percent at 42,206.82 (close) (FRANCE 24 with AFP) Originally published on France24
