Kuala lumpur: The ringgit opened mostly higher against major currencies today but eased slightly against the US dollar as investors stayed cautious over ongoing United States-Iran negotiations. At 8 am, the local currency fell to 3.9670/9770 against the greenback from Tuesday's close of 3.9660/9705.
According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid highlighted that uncertainties surrounding the situation in Iran continue to dominate market sentiment. This is occurring despite major equity markets, such as the US, reaching record highs.
"There are conflicting signals. The Iranian state news agency seems to suggest that the negotiation is proceeding well. But US President Donald Trump remains hostile, especially with his remarks about the Straits of Hormuz that there should not be any country controlling it," Dr. Mohd Afzanizam noted.
Additionally, there are concerns about rising inflation, which may compel the US Federal Reserve to raise interest rates. However, positive earnings and optimism related to AI investment are supporting sentiment, he added.
In global oil markets, West Texas Intermediate (WTI) crude rose by 1.40 percent to US$89.92 per barrel, while Brent crude prices fell 5.31 percent to US$94.29 per barrel. Meanwhile, the US Dollar Index (DXY) hovered around 99.21 points, slightly up by 0.04 percent.
Dr. Mohd Afzanizam stated, "Hence, we expect the ringgit-US dollar pair to trade around RM3.95 to RM3.97 today."
At the opening, the ringgit showed strength against a basket of major currencies. It gained against the Japanese yen, rising to 2.4859/4925 from 2.4917/4947 at Tuesday's close. It also increased against the euro to 4.6089/6205 from 4.6172/6225, and strengthened vis-a-vis the British pound to 5.3217/3351 from 5.3470/3530 previously.
The local currency was also higher against the Thai baht, trading at 12.1445/1818 from 12.1485/1675 at Tuesday's close. However, it declined versus the Singapore dollar to 3.1041/1121 from 3.1038/1075. The ringgit remained flat against the Philippine peso and Indonesian rupiah at 6.44/6.46 and 222.8/223.5, respectively.