Kuala lumpur: The ringgit closed higher against both major and regional currencies, including the US dollar, on Monday, as it navigated through ongoing geopolitical uncertainties in West Asia. At 6 pm, the Malaysian currency appreciated to 4.0680/0730 against the US dollar, compared to its previous close of 4.0695/0745 last Friday.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd's chief economist, Dr Mohd Afzanizam Abdul Rashid, highlighted that investors are closely monitoring the uncertainties related to the United States-Iran ceasefire and the free passage of vessels through the crucial Strait of Hormuz. Despite these geopolitical challenges, crude oil prices have remained high, with West Texas Intermediate and Brent crude trading at US$73.02 and US$77.80 per barrel, respectively.

Dr Abdul Rashid further noted that US interest-rate futures currently show a 55.7% probability of a quarter-point increase in the federal funds rate by September. "This expectation is likely to continue supporting the US dollar in the near term," he explained to Bernama.

As the trading day concluded, the ringgit showed strength against a variety of major currencies. It appreciated against the Japanese yen to 2.5110/5142 from 2.5148/5181 last Friday, strengthened against the British pound to 5.4475/4542 from 5.4572/4639, and inched up against the euro to 4.6501/6558 from 4.6502/6559.

The ringgit also performed well against regional currencies, rising against the Singapore dollar to 3.1489/1530 from 3.1520/1561 and strengthening against the Indonesian rupiah to 224.6/225.0 from 225.2/225.6. Additionally, the local currency firmed against the Thai baht to 12.1953/2151 from 12.2101/2302 and gained against the Philippine peso to 6.60/6.62 from 6.61/6.62.