Ringgit opens higher against greenback on improved sentiment
KUALA LUMPUR: The ringgit opened higher against the US dollar on Monday, supported by improved market sentiment amid investor optimism over possible progress in negotiations between the United States and Iran.
At 8am, the local currency strengthened to 3.9635/9705 against the greenback from Friday’s close of 3.9655/9700.
Reports said the United States and Iran were negotiating a deal that could lead to the reopening of the Strait of Hormuz, a key global oil shipping route through which about 20 per cent of the world’s oil supply passes.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) fell 0.25 per cent to 98.987 points, while the S&P 500 futures index rose 0.61 per cent to 7,536.50 points, indicating a risk-on sentiment among traders and investors.
Meanwhile, West Texas Intermediate (WTI) and Brent crude oil prices fell more than five per cent to US$91.75 and US$98.33 per barrel, respectively.
“On that note, the ringgit could appreciate further amid improved market sentiment. The ringgit against the US dollar could move towards RM3.95.
“Relatively better macroeconomic indicators, such as an improving current account surplus and narrowing fiscal deficit in the first quarter of 2026, suggest the risk of Malaysia becoming a twin-deficit economy remains low,” he told Bernama.
At the opening, the ringgit traded lower against a basket of major currencies.
It weakened against the Japanese yen to 2.4934/4980 from 2.4925/4954 at Friday’s close, slipped versus the British pound to 5.3432/3526 from 5.3245/3305 and declined against the euro to 4.6143/6225 from 4.6012/6064 previously.
The local currency was mixed against regional peers.
It fell against the Singapore dollar to 3.1030/1090 from 3.0985/1023 at Friday’s close and weakened versus the Thai baht to 12.1954/2248 from 12.1421/1611 previously. However, it edged higher against the Indonesian rupiah to 223.7/224.2 from 223.8/224.1 and was unchanged against the Philippine peso at 6.42/6.44.
© New Straits Times Press (M) Bhd
المصدر: New Straits Times