Ringgit eases vs US dollar, ends higher against Asean currencies

 Elevated Brent crude prices and concerns over fiscal sustainability in Europe have strengthened the US dollar as traders sought safe-haven assets amid uncertainty, says an analyst.

KUALA LUMPUR:

The ringgit closed higher on Thursday against most Asean currencies, but lower against the US dollar amid a renewed surge in oil prices and escalating geopolitical tensions in the Middle East, an analyst said.

At 6pm, the ringgit inched down to 4.0890/4.0940 against the greenback from Wednesday’s close of 4.0850/4.0895.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said Brent crude rose 4.08% to US$104.29 a barrel amid expectations of a prolonged Middle East conflict.

“In addition, concerns about fiscal sustainability in Europe, especially in France, have led to a stronger US dollar. It appears that … traders are seeking refuge against uncertainties,” he told Bernama today.

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

The local note went up against the British pound to 5.3930/5.3996 from 5.4049/5.4108 at Wednesday’s close, strengthened against the euro to 4.5719/4.5775 from 4.5740/4.5790, but eased against the Japanese yen to 2.5834/2.5867 from 2.5797/2.5827.

The ringgit traded mostly higher against its Asean peers.

The local note edged up against the Singapore dollar to 3.1893/3.1934 from 3.1919/3.1957 at Wednesday’s close, appreciated against the Philippine peso to 6.50/6.51 from 6.51/6.52, but weakened against the Thai baht to 12.1371/12.1563 from 12.1217/12.1386 previously. - FMT