Ringgit slips on geopolitical uncertainties

 The market is looking for signs of de-escalation, but so far this appears to be 'wishful thinking', says an analyst.

KUALA LUMPUR:

 The ringgit ended lower against the US dollar and other currencies on Tuesday as uncertainty over the escalating US-Israel-Iran conflict weighed on market sentiment.

Markets in Malaysia were closed on March 20 (Friday) and March 23 (Monday) in conjunction with Hari Raya Aidilfitri.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said the market is looking for signs of de-escalation in the conflict, but so far this appears to be just “wishful thinking”.

US president Donald Trump has indicated significant progress in talks with Iran, but markets remain unconvinced, especially as Iranian officials have reportedly denied any such developments.

“It is learnt that Pakistan is making an effort to mediate talks between the US and Iran. It remains to be seen how the effort could yield the desired effect.

“The US dollar-ringgit pair is currently hovering around RM3.9575, depreciating by 0.51%. Hence, the financial effect is likely to stay defensive in the immediate terms,” he told Bernama.

At the close, the ringgit fell against a basket of major currencies.

At 6pm, the local currency eased to 3.9530/3.9585 against the greenback from Thursday’s close of 3.9330/3.9415.

It eased versus the Japanese yen to 2.4916/2.4954 from 2.4716/2.4771, edged down against the British pound to 5.2982/5.3056 from 5.2246/5.2359, and retreated vis-à-vis the euro to 4.5835/4.5899 from 4.51394/4.5237 previously.

The local currency also trended lower against Asean currencies.

It depreciated against the Singapore dollar to 3.0909/3.0955 from 3.0671/3.0740, slipped versus the Thai baht to 12.1373/12.1613 from 11.9872/12.0204, declined against the Indonesian rupiah to 233.9/234.3 from 231.4/232.0, and weakened versus the Philippine peso to 6.59/6.61 from 6.54/6.56 previously. - FMT