Ringgit opens slightly higher against greenback, major currencies

KUALA LUMPUR: 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 4.0800/0865 versus the greenback from Monday's close of 4.0805/0845.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam 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 per cent, respectively," he told Bernama.

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 4.6390/6464 from 4.6416/6461 at Monday's close, climbed vis-à-vis the British pound to 5.4072/4158 from 5.4099/4152, and gained versus the Japanese yen to 2.5928/5971 from 2.5994/6021.

Against Asean currencies, the local note eased versus the Singapore dollar to 3.1937/1991 from 3.1914/1948 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 12.1338/1589 from 12.1429/1588 previously.