Ringgit opens mostly higher against major currencies, lower vs US dollar

The ringgit opened mostly higher against major currencies but slightly lower against the US dollar, with geopolitical uncertainties supporting demand for the greenback.

At 8am, the ringgit eased to 4.0725/4.0780 versus the greenback from Friday’s close of 4.0715/4.0765.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said that geopolitical risk will continue to shape market sentiment US president Donald Trump rejected Iran’s plan to reopen the Strait of Hormuz.

It was reported last week that Iran had proposed to reopen the Strait of Hormuz to commercial shipping within seven days, but Trump rejected the proposal.

Iranian foreign minister Abbas Araghchi said Tehran will wait for an official response from mediators.

“Traders will also be monitoring US labour market data for further indications of the economy’s direction,” Afzanizam added.

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

It gained against the euro to 4.6333/4.6395 from 4.6378/4.6435 at Friday’s close and advanced vis-à-vis the British pound to 5.3867/5.3940 from 5.3907/5.3973. However, it eased versus the Japanese yen to 2.5864/2.5900 from 2.5764/2.5797 previously.

Against Asean currencies, the local note strengthened versus the Singapore dollar to 3.1851/3.1897 from 3.1858/3.1900 at last week’s close and edged up against the Thai baht to 12.1712/12.1946 from 12.2036/12.2234 previously.

The ringgit was unchanged vis-à-vis the Indonesian rupiah at 227.4/227.8 and the Philippine peso at 6.52/6.53.