Ringgit opens higher against major currencies, eases vs dollar

 The local note edges down to 4.0430/4.0500 as investors turn cautious amid escalating US-Iran tensions.

KUALA LUMPUR:

The ringgit opened higher against most major currencies but eased slightly against the US dollar on Friday as investors turned cautious amid escalating tensions between the US and Iran, an economist said.

At 8am, the local currency eased slightly to 4.0430/4.0500 against the greenback from Thursday’s close of 4.0425/4.0470.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the US government was seeking to isolate Iran economically and was expected to announce such measures in the near term.

Afzanizam said the development had led to a 1.75% increase in Brent crude prices to US$93.22 a barrel.

“At the same time, the US government is also expanding its efforts to buy back US Treasuries to suppress Treasury yields from rising.

“The 30-year US Treasury yield rose six basis points to 5.25%,” he noted.

He said the main concern was how the US planned to isolate Iran economically and whether this would trigger further protectionist policies towards Iranian trade partners.

As such, he expected the ringgit to trade between RM4.04 and RM4.06 against the US dollar today.

At the opening, the ringgit traded higher against a basket of major currencies.

It rose against the Japanese yen to 2.5445/2.5491 from 2.5527/2.5557 at Thursday’s close, strengthened against the British pound to 5.5159/5.5254 from 5.5164/5.5225 and edged up against the euro to 4.7251/4.7332 from 4.7322/4.7374 previously.

The local note traded mixed against regional currencies.

It rose against the Singapore dollar to 3.1797/3.1855 from 3.1813/3.1851 at Thursday’s close, but fell against the Thai baht to 12.3120/12.3400 from 12.3014/12.3211.

The ringgit was little changed against the Indonesian rupiah at 227.8/228.2 versus 227.7/228.1 previously, and was almost flat against the Philippine peso at 6.56/6.57 compared with 6.55/6.57. - FMT