Ringgit opens slightly higher against US dollar, major currencies

The ringgit opened slightly higher against the US dollar and a basket of major currencies on Tuesday, with elevated geopolitical risks continuing to favour defensive positioning.

At 8am, the ringgit edged up to 4.0800/4.0865 versus the greenback from Monday’s close of 4.0805/4.0845.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid noted that Brent crude oil remained above US$106 per barrel on Monday as the US-Iran standoff persisted, keeping concerns over energy-driven inflation firmly in focus. “Meanwhile, US Treasury yields moved sharply higher, with the two-year and 10-year yields hovering around 4.9 and 5.2%, respectively,” he added.

Higher US yields reinforce the relative attractiveness of US dollar assets and could limit demand for emerging-market currencies, including the ringgit, he said.

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

It increased against the euro to 4.6390/4.6464 from 4.6416/4.6461 at Monday’s close, climbed vis-à-vis the British pound to 5.4072/5.4158 from 5.4099/5.4152, and gained versus the Japanese yen to 2.5928/2.5971 from 2.5994/2.6021.

Against Asean currencies, the local note eased versus the Singapore dollar to 3.1937/3.1991 from 3.1914/3.1948 at yesterday’s close and was little changed against the Philippine peso at 6.52/6.54 from 6.52/6.53.

It was also flat against the Indonesian rupiah at 226.9/227.3 against 226.9/227.2.

However, the local note advanced against the Thai baht to 12.1338/12.1589 from 12.1429/12.1588 previously.