The ringgit and other currencies could be affected by the latest assessment of the Middle East war’s impact on global and domestic economies.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said markets are watching how the US-Israeli war on Iran could affect the global economy, especially inflation.
He told Bernama that Asian countries importing Middle Eastern oil, including China, India, Japan and South Korea, could face supply disruptions, potentially impacting domestic fuel prices.
He said the key question is how severe and prolonged the war will be, which is why a risk-off sentiment continues to prevail.
“Tomorrow, Bank Negara Malaysia’s Monetary Policy Committee will decide the Overnight Policy Rate (OPR), and we expect it to remain at 2.75%.”
“More importantly, the market would want to see their latest assessment on the Iran war and its implication on the global and domestic economies,” he said.
At 6pm, the ringgit rose by 0.09% to 3.9395/3.9465 versus the greenback from 3.9440/3.9495 at Tuesday’s close.
At the close, the ringgit traded mostly lower against a basket of major currencies.
It strengthened versus the euro to 4.5738/4.5819 from 4.5778/4.5842 at Tuesday’s close but fell against the British pound to 5.2640/5.2733 from 5.2451/5.2524 yesterday and slipped vis-à-vis the Japanese yen to 2.5062/2.5108 from 2.5010/2.5048 previously.
The local currency traded mixed against its Asean peers.
It eased versus the Singapore dollar to 3.0864/3.0921 from 3.0863./3.0909 at the previous close and slipped vis-a-vis the Thai baht to 12.5246/12.5541 from 12.4401/12.4637.
However, the ringgit appreciated against the Indonesian rupiah to 233.1/233.7 from 233.7/234.2 yesterday and firmed versus the Philippine peso to 6.72/6.74 from 6.75/6.76. - FMT
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