Kuala lumpur: The ringgit opened lower against the US dollar on Thursday, influenced by cautious sentiment as traders awaited clearer outcomes from ongoing United States-Iran negotiations. At 8 am, the local currency eased to 3.9550/9600 versus the greenback, from 3.9510/9550 at Wednesday's close.
According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid commented on the situation, stating that the dollar-ringgit pair has been hovering around RM3.95. This fluctuation is due to alternating optimism and pessimism, which has kept trade directionless in the near term.
He further noted that West Texas Intermediate (WTI) and Brent crude prices were on the rise, reaching US$92.96 and US$101.69 per barrel, respectively. The lack of progress on the reopening of the Strait of Hormuz continues to weigh on sentiment and the ringgit.
Meanwhile, benchmark US equities experienced a positive outcome overnight, with the S and P 500 reaching another record high. In addition, US Treasury yields increased, indicating that prospects of higher inflation may prompt the Federal Reserve to maintain a restrictive monetary policy stance.
At the open, the ringgit showed an overall strengthening trend against a basket of major currencies. It saw an increase against the British pound, rising to 5.3389/3456 from 5.3414/3468 at Wednesday's close, and it also appreciated versus the euro, moving to 4.6293/6352 from 4.6408/6455. However, it slightly declined against the Japanese yen, trading at 2.4798/4831 compared to 2.4794/4821 previously.
In terms of its performance against ASEAN peers, the ringgit experienced a mixed trading session. It appreciated against the Singapore dollar, climbing to 3.1000/1042 from 3.1030/1063 at Wednesday's close, and strengthened against the Thai baht, moving to 12.2567/2795 from 12.2717/2902. Conversely, it weakened against the Indonesian rupiah, falling to 230.2/230.5 from 229.9/230.2, and remained unchanged against the Philippine peso at 6.57/6.59, compared to 6.57/6.58 previously.