Ringgit Opens Firmer Against US Dollar On Easing West Asia Tensions

By K. Naveen Prabu

KUALA LUMPUR, May 21 (Bernama) -- The ringgit opened firmer against the US dollar on Thursday, supported by easing geopolitical tensions in West Asia.

At 8 am, the local currency strengthened to 3.9655/9710 against the greenback from Wednesday’s close of 3.9675/9715.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said crude oil prices eased after United States President Donald Trump indicated that negotiations between the US and Iran were nearing completion.

He said West Texas Intermediate and Brent crude prices fell 0.82 per cent and 5.46 per cent to US$107.77 per barrel and US$105.20 per barrel, respectively.

“This has raised hopes that the Strait of Hormuz will soon reopen, allowing the free flow of oil, gas and other goods,” he told Bernama.

Mohd Afzanizam said the US Dollar Index declined 0.21 per cent to 99.122 points despite minutes of the Federal Open Market Committee meeting showing policymakers remained inclined to raise interest rates, with inflation expected to stay above the two per cent target for an extended period.

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

The local currency depreciated against the British pound to 5.3265/3338 from 5.3089/3143 at Wednesday’s close, weakened against the euro to 4.6091/6155 from 4.5975/6022 previously, and eased against the Japanese yen to 2.4954/4991 from 2.4942/4969.

Against regional currencies, the ringgit traded mixed.

It weakened against the Thai baht to 12.1723/1963 from 12.1341/1516 and slipped against the Singapore dollar to 3.1027/1072 from 3.0969/1003 previously.

However, the local currency appreciated against the Indonesian rupiah to 224.6/225.0 from 224.7/225.0 previously and strengthened against the Philippine peso to 6.42/6.44 from 6.43/6.44 previously.

-- BERNAMA