Kuala Lumpur: The ringgit opened on a stronger note today, despite ongoing geopolitical concerns and a robust US dollar, following the US Federal Reserve’s decision to maintain its current interest rates.

According to BERNAMA News Agency, at 8 am, the ringgit appreciated to 4.2435/2650 against the US dollar, up from the previous day’s close of 4.2500/2550. Dr. Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, noted that the US dollar had gained strength overnight after the US Federal Open Market Committee (FOMC) decided to keep the Fed funds rate unchanged at the range of 4.25 to 4.50 percent.

Dr. Afzanizam expressed concerns about the risk of higher inflation in the US, highlighting the need for vigilance, especially with the Middle East conflict remaining unresolved. The potential for US involvement in a military conflict between Israel and Iran is seen as a significant factor influencing market sentiments. He also mentioned that the ringgit had depreciated by 0.22 percent against the US dollar on the previous Thursday, following a rally in the greenback. Investors are particularly cautious about the approaching end of the 90-day tariff pause period in early July, which is seen as a potential market hurdle.

At the market opening, the ringgit showed strength against a basket of major currencies. It gained against the Japanese yen, British pound, and euro, reflecting a broader trend of appreciation. Specifically, the ringgit rose to 2.9276/9426 against the yen, strengthened to 5.6922/7211 versus the pound, and advanced to 4.8698/8945 against the euro.

In relation to its ASEAN counterparts, the ringgit also demonstrated positive performance. It appreciated against the Singapore dollar, Thai baht, Indonesian rupiah, and Philippine peso. These gains indicate a favorable position for the ringgit in the regional currency markets.