Ringgit Edges Up Against Greenback Despite Global Jitters
The ringgit opened stronger against the US dollar on Friday, even as investors remained cautious amid escalating tensions in the Middle East.
At 8am, the local note stood at RM4.2490/2700 versus the greenback, appreciating from Thursday's close of RM4.2590/2625.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid attributed the gains to a slight pullback in the US Dollar Index (DXY), which stayed below the 100-point level. 'This signals that traders may be rotating into other major currencies or alternative asset classes for safety,' he told local media.
Nevertheless, he warned that the ringgit may stay under pressure in the near term given persistent global uncertainties. 'Market sentiment is expected to remain cautious as traders closely monitor the Israel-Iran conflict and the US' potential response,' he said.
In broader trading, the ringgit was mostly lower against major currencies. It slipped against the British pound to RM5.7264/7547 from RM5.7164/7211 and eased against the euro at RM4.8910/9152 compared to RM4.8868/8908. It, however, firmed slightly versus the Japanese yen at RM2.9257/9404 from RM2.9286/9312.
Regionally, the ringgit posted gains across most ASEAN currencies. It rose to RM3.3051/3219 against the Singapore dollar from RM3.3072/3102, and to RM12.9883/13.0593 versus the Thai baht from RM12.9966/13.0513. The local unit also strengthened against the Indonesian rupiah at 258.9/260.3 and the Philippine peso at 7.39/7.44. Related
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