Ringgit opens higher against US dollar on improved sentiment

KUALA LUMPUR: The ringgit opened higher against the greenback on Friday amid news about the possible US-Iran truce, which is expected to have a positive impact on the local note, said an analyst.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid expects the ringgit-US dollar pair to trade in a RM3.95 to RM3.97 range today.

“News on the 60-day US-Iran truce has led to a decline in Brent crude oil prices by 1.04% to US$93.31 per barrel. The news (about the truce) is unconfirmed, but the market has reacted positively.

“This suggests that the investing community is fatigued with the nature of the unstable negotiations,” he told Bernama.

At the same time, the US personal consumption expenditures (PCE) inflation rate accelerated to 3.8% in April from 3.5% the month before, indicating that higher oil prices have eroded Americans’ purchasing power.

Meanwhile, initial jobless claims also climbed to 215,000 last week from 210,000 previously. It has been on the uptrend since April 30.

As a result, the US Dollar Index was down by 0.21% to 98.997 points.

Back home, the ringgit traded lower against a basket of major currencies.

At 8am, the local currency rose to 3.9755/3.9815 against the greenback from Thursday’s close of 3.9770/3.9805.

It fell against the British pound to 5.3447/5.3527 from 5.3272/5.3319 at yesterday’s close, declined against the euro to 4.6323/4.6392 from 4.6181/4.6222, and eased versus the Japanese yen to 2.4961/2.5000 from yesterday’s 2.4947/2.4970.

The local note slid against the Singapore dollar to 3.1151/3.1201 from 3.1085/3.1115 at Thursday’s close, and slipped against the Thai baht to 12.2083/12.2338 from 12.1613/22.1773 previously.

It was little changed against the Indonesian rupiah at 222.7/223.2 versus 222.8/223.1 previously and was flat vis-a-vis the the Philippine peso at 6.45/6.46.

المصدر: Free Malaysia Today