Kuala lumpur: The ringgit extended its upward momentum, opening higher against the US dollar for a third consecutive day on Thursday, as market sentiment continued to hinge on prospects of a ceasefire between the United States and Iran. At 8 am, the local currency strengthened to 3.9550/9760 against the greenback from Wednesday’s close of 3.9620/9670.
According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid noted that the ringgit traded steadily against the greenback as the market awaits the eventual outcome of possible US-Iran talks. He highlighted that market participants remain cautious about whether the war will end soon, while countries globally are dealing with rising fuel prices.
Mohd Afzanizam reported that Brent crude oil price was 1.21 percent lower at US$103.23 per barrel, while spot gold prices increased by 0.68 percent to US$4,506 per troy ounce. He also mentioned that US equities saw a slight increase, while the US Dollar Index (DXY) remained bel
ow the 100-point level.
Meanwhile, SPI Asset Management managing partner Stephen Innes pointed out growing fears in the currency market amid rising speculation of a US move on Kharg Island to seize control of Iranian oil flows. He explained that this situation effectively creates a de facto embargo following Tehran’s rejection of Washington’s 15-point ceasefire proposal.
The ringgit also opened higher against a basket of other major currencies. It rose against the Japanese yen to 2.4813/4948 from 2.4935/4969 at Wednesday’s close, edged up against the British pound to 5.2847/3127 from 5.3087/3154, and appreciated vis-à-vis the euro to 4.5728/5971 from 4.5963/6021 at the previous day’s close.
The local currency showed strength against ASEAN currencies as well. It gained against the Singapore dollar to 3.0869/1038 from 3.0965/1007 at the previous close, strengthened against the Thai baht at 12.0645/1375 from 12.1336/1557, increased vis-à-vis the Indonesian rupiah to 233.8/235.2 from 234.2/234.6, and advanced
against the Philippine peso at 6.58/6.62 from 6.59/6.60 previously.