Ringgit holds steady amid cautious sentiment due to geopolitical risks

The purchasing managers’ index data indicates a positive trend in Asian economies, including Malaysia, says analyst.

KUALA LUMPUR:

 The ringgit held steady against the US dollar at the close today, supported by positive business indicators across Asia, including Malaysia, but tilted slightly lower amid cautious market sentiment due to heightened geopolitical risks.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the purchasing managers’ index (PMI) data showed that Asian economies, including Malaysia, have exhibited a positive trend, indicating improving business sentiment despite uncertainties over US tariff policies and heightened geopolitical risks.

The US said it had shot down an Iranian drone as Middle East tensions escalated.

“The ongoing rewiring of global supply chains has made private firms increasingly resilient in the face of global uncertainties.

“This may have translated into improved business sentiment, as indicated by the PMI data,” he told Bernama.

At 6pm, the local currency eased to 3.9305/3.9345 against the greenback from yesterday’s close of 3.9295/3.9360.

At the close, the ringgit traded mostly lower against other major currencies.

It depreciated vis-à-vis the British pound to 5.3887/5.3942 from 5.3704/5.3793 and slipped against the euro to 4.6443/4.6490 from 4.6341/4.6417, but it gained versus the Japanese yen to 2.5091/2.5118 from 2.5210/2.5253 at yesterday’s close.

However, the local note traded higher against its Asean peers.

It was slightly higher vis-à-vis the Singapore dollar at 3.0912/3.0946 from 3.0919/3.0973, strengthened versus the Thai baht to 12.4206/12.4391 from 12.4584/12.4845, firmed against the Indonesian rupiah to 234.2/234.6 from 234.5/235 and rose against the Philippine peso to 6.66/6.67 from 6.67/6.68 previously. - FMT