Investors continued to assess uncertainty over the US-Iran ceasefire, elevated oil prices and the prospect of a September rate hike, all supporting the US dollar, says an analyst.
At 6pm, the local currency edged up to 4.0680/4.0730 versus the greenback from 4.0695/4.0745 at last Friday’s close.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said investors continued to assess uncertainties surrounding the US-Iran ceasefire and the free flow of vessels through the Strait of Hormuz.
He said crude oil prices remained elevated, with West Texas Intermediate and Brent crude trading at US$73.02 and US$77.80 per barrel, respectively.
“Meanwhile, US interest-rate futures indicated a 55.7% probability of a quarter-point increase in the federal funds rate in September.
“As such, this is expected to continue providing support for the US dollar in the near term,” he told Bernama.
At the close, the ringgit traded higher against a basket of major currencies.
It appreciated versus the Japanese yen to 2.5110/2.5142 from 2.5148/2.5181 at last Friday’s close, strengthened against the British pound to 5.4475/5.4542 from 5.4572/5.4639 at the end of last week, and inched up vis-a-vis the euro to 4.6501/4.6558 from 4.6502/4.6559 previously.
The ringgit also performed better against regional currencies.
It rose versus the Singapore dollar to 3.1489/3.1530 from 3.1520/3.1561 at the previous close and strengthened against the Indonesian rupiah to 224.6/225.0 from 225.2/225.6.
The local currency was also firmer against the Thai baht to 12.1953/12.2151 from 12.2101/2302 previously and gained vis-a-vis the Philippine peso to 6.60/6.62 from 6.61/6.62. - FMT
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