Ringgit softens against US dollar amid Brent crude gains

US president Donald Trump’s 10-day deadline extension for Iran to open the Strait of Hormuz failed to calm the crude oil market, says analyst.

KUALA LUMPUR:

 The ringgit ended lower against the US dollar and other major currencies on Friday as Brent crude oil prices gained traction amid uncertainties over the US-Israel war on Iran, said an economist.

At 6pm, the local currency fell to 4.0105/4.0140 against the greenback from yesterday’s close of 3.9920/3.9955.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said US president Donald Trump’s 10-day deadline extension for Iran to open the Strait of Hormuz failed to calm the crude oil market.

“There are growing concerns among Federal Reserve members that upside risks to inflation have surpassed the risks of weak employment, creating a policy dilemma for the US central bank.

“As such, the ringgit is likely to remain weak and may hover around the RM4.00 level in light of the heightened economic fallout from the oil shock,” he told Bernama.

At the time of writing, Brent crude rose 1.74% to US$108.89 per barrel.

At the close, the ringgit was traded lower against a basket of major currencies.

It fell versus the Japanese yen to 2.5084/2.5109 from 2.5025/2.5049 at yesterday’s close, decreased against the British pound to 5.3368/5.3414 from 5.3301/5.3348 yesterday and slipped vis-à-vis the euro to 4.6197/4.6237 from 4.6140/4.6180 previously.

The local currency also traded lower or flat against Asean currencies.

It dropped versus the Singapore dollar to 3.1164/3.1194 from 3.1102/3.1132 yesterday and declined against the Thai baht to 12.1903/12.2077 from 12.1529/12.1695 yesterday.

However, it was flat vis-a-vis the Indonesian rupiah at 236.1/236.5 compared with 236.1/236.4 previously and was unchanged against the Philippine peso at 6.62/6.63. - FMT