Ringgit opens mostly higher amid cautious sentiment over US-Iran tensions

KUALA LUMPUR, May 28 — The ringgit opened mostly higher against major currencies today but eased slightly against the US dollar as investors stayed cautious over ongoing United States-Iran negotiations.

At 8 am, the local currency fell to 3.9670/9770 against the greenback from Tuesday’s close of 3.9660/9705.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid told Bernama uncertainties revolving around war in Iran continue to dominate market sentiment, despite major equity bourses reaching record highs, such as the US. 

“There are to be conflicting signals. The Iranian state news agency seems to suggest that the negotiation is proceeding well. But US President Donald Trump remains hostile, especially with his remarks about the Straits of Hormuz that there should not be any country controlling it,” he said. 

At the same time, there are fears about rising inflation, which could force the US Federal Reserve (Fed) to raise interest rates. Positive earnings and AI optimism on related investment continue to support sentiment, he said. 

In the world’s two primary oil pricing benchmarks, West Texas Intermediate (WTI) was up by 1.40 per cent to US$89.92 per barrel, while Brent crude oil prices dropped 5.31 per cent to US$94.29 per barrel. 

Meanwhile, the US Dollar Index (DXY) hovered around 99.21 points, slightly higher by 0.04 per cent. 

“Hence, we expect the ringgit-US dollar pair to trade around RM3.95 to RM3.97 today,” he said.

At the opening, the ringgit traded higher against a basket of major currencies. 

It strengthened versus the Japanese yen to 2.4859/4925 from 2.4917/4947 at Tuesday’s close, rose against the euro to 4.6089/6205 from 4.6172/6225 and increased vis-a-vis the British pound to 5.3217/3351 from 5.3470/3530 previously.

The local currency was higher against the Thai baht to 12.1445/1818 from 12.1485/1675 at Tuesday’s close, declined versus the Singapore dollar to 3.1041/1121 from 3.1038/1075.

The ringgit was flat against the Philippine peso and Indonesian rupiah at 6.44/6.46 and 222.8/223.5, respectively.  — Bernama

المصدر: Malay Mail