Ringgit opens slightly higher amid cautious market sentiment

 The local unit rises to 3.9495/3.9605 against the greenback from Friday’s close of 3.9515/3.9580.

KUALA LUMPUR:

The ringgit opened slightly higher against the US dollar on Monday although cautious sentiment persisted amid escalating geopolitical tensions in West Asia.

At 8am, the local unit rose to 3.9495/3.9605 against the greenback from Friday’s close of 3.9515/3.9580.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said market sentiment remained cautious as the prolonged stalemate between the US and Iran continued to raise concerns over a wider conflict in the region.

“The stalemate between the US and Iran seems likely to be protracted and the recent attack on the United Arab Emirates’ nuclear facility suggests that the war would likely be prolonged.

“By extension, the closure of the Strait of Hormuz would also be the case as both countries would use the waterway as their leverage,” he noted.

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

The local note appreciated against the British pound to 5.2572/5.2718 from 5.2749/5.2835 at Friday’s close, strengthened against the euro to 4.5873/4.6001 from 4.5948/4.6024 previously and rose against the Japanese yen to 2.4863/2.4934 from 2.4927/2.4968.

The ringgit also traded higher against its regional peers.

It advanced against the Thai baht to 12.0684/12.1083 from 12.0989/12.1247, improved against the Singapore dollar to 3.0824/3.0915 from 3.0871/3.0927 and edged higher against the Indonesian rupiah to 224.4/225.1 from 224.5/225.0 previously.

The local currency was almost unchanged against the Philippine peso at 6.40/6.42 from 6.40/6.41 previously. - FMT