KUALA LUMPUR: The ringgit rose against the US dollar for the third consecutive day despite heightened concern over geopolitical development in Ukraine, said an analyst. At 6 pm, the local currency appreciated to 4.4610/4650 against the greenback, compared to Wednesday’s close of 4.4685/4740.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the US dollar Index (DXY) decreased by 0.05 percent to 106.629. This suggests a diminishing effect of the so-called ‘Trump trades’ that emerged post-election. Despite the rise of the ringgit, market participants remain cautious, especially with the recent escalation of the Ukraine conflict. President-elect Trump’s promise to swiftly end the war in Ukraine is seen as pivotal, but uncertainty remains until his inauguration on January 20.

In the interim, Mohd Afzanizam mentioned that demand for the US dollar is expected to stay high as traders seek a safe haven amidst geopolitical uncertainties. The ringgi
t showed a mixed performance against other major currencies. It strengthened against the British pound and euro, closing at 5.6342/6393 and 4.6907/6949 respectively. However, it weakened against the Japanese yen, closing at 2.8892/8920.

The ringgit also exhibited a predominantly positive trend against ASEAN currencies. It improved against the Indonesian rupiah at 279.9/280.4, the Singapore dollar at 3.3189/3222, and the Philippine peso at 7.56/7.57. However, it saw a decline against the Thai baht, closing at 12.8748/8923.