The ringgit strengthened against the US dollar and other major currencies at Tuesday’s close, despite a firmer US Dollar Index, as investors closely monitored the progress in finding a solution for the Middle East war.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said Asian currency markets were mixed as traders and investors awaited developments in the efforts to end the war.
So far, he said, West Texas Intermediate (WTI) and Brent crude prices fell by 1.06% and 0.84% to US$88.66 per barrel and US$94.68 per barrel respectively.
“It appears there is optimism in the market that some resolution could be achieved. Nonetheless, the prevailing situation is highly fluid and hence, the risk is rather high for now,” he told Bernama.
At the close, the ringgit traded higher against a basket of major currencies.
At 6pm, the local currency firmed to 3.9490/3.9530 against the greenback, from 3.9515/3.9555 on Monday.
It strengthened against the British pound to 5.3323/5.3377 from 5.3412/5.3466 at yesterday’s close, rose vis-à-vis the euro to 4.6436/4.6483 from 4.6489/4.6536 and appreciated versus the Japanese yen to 2.4802/2.4829 from 2.4863/2.4890.
The local currency traded mixed against regional peers.
It advanced against the Singapore dollar to 3.1043/3.1077 from 3.1077/3.1111 and inched up against the Thai baht to 12.2983/12.3162 from 12.3127/12.3313.
However, the ringgit eased against the Indonesian rupiah to 230.3/230.7 from 230.1/230.5 and slipped against the Philippine peso to 6.59/6.60 compared with 6.58/6.60 previously.
