Ringgit makes small opening gain against US dollar
The currency posted mixed results against ASEAN peers, while a Bank Muamalat economist forecast a narrow trading range amid continued caution.
Malaysia’s ringgit was quoted at 4.0690/0750 per US dollar at 8am, a marginal improvement from the preceding close of 4.0695/0735. The opening gain came amid indications that diplomatic discussions between the US and Iran were progressing.
Dr Mohd Afzanizam Abdul Rashid, Bank Muamalat Malaysia Bhd’s chief economist, said the negotiations could bring about a reopening of the Straits of Hormuz. Brent crude declined by 8.12 per cent, reaching US$104.21 per barrel.
Speaking to Bernama, he said yields had fallen at US Treasury bill auctions covering three- and six-month maturities, indicating reduced expectations of a rate increase. He expected the ringgit to remain within a narrow range as sentiment stayed cautious, noting uncertainty in the Middle East and investors’ attention to the US mid-term election result.
The ringgit’s euro quote improved to 4.5540/5607, compared with 4.5652/5697 at the preceding close. Sterling also weakened against the Malaysian currency, which moved to 5.4561/4642 from 5.4621/4675. The yen quote, however, edged lower for the ringgit at 2.5769/5809, versus 2.5766/5793 previously.
Among regional currencies, the ringgit strengthened against Singapore’s dollar, with a quote of 3.1809/1858 versus 3.1825/1862 previously. Its rates against Indonesia’s rupiah and the Philippine peso were unchanged at 224.1/224.5 and 6.39/6.41 respectively. It lost ground against Thailand’s baht, moving to 12.0634/0920 compared with the earlier closing quote of 12.0496/0661.
