Ringgit Opens Slightly Higher Against USD Amid West Asia Developments

By K. Naveen Prabu

KUALA LUMPUR, May 19 (Bernama) -- The ringgit opened slightly higher against the US dollar on Tuesday as market sentiment continued to focus on developments in West Asia.

At 8 am, the local unit rose to 3.9705/9760 against the greenback from Monday’s close of 3.9720/9770.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said market sentiment continued to revolve around the situation in West Asia, as the United States (US) and Iran continued negotiations for a resolution, which, to a large extent, remained highly elusive.

“The latest development showed that US President Donald Trump had called off plans to attack Iran as serious negotiations with Tehran are ongoing,” he told Bernama. 

Mohd Afzanizam said that despite ongoing negotiations between the US and Iran, the rise in crude oil prices indicated that concerns over escalating geopolitical tensions persisted.

“Still, West Texas Intermediate and Brent crude oil prices rose 3.07 per cent and 2.60 per cent to US$108.66 per barrel and US$112.10 per barrel, respectively.

“Meanwhile, the US dollar index (DXY) fell 0.34 per cent to 98.947 points,” he said. 

As such, Mohd Afzanizam said the ringgit would likely trade within a narrow range of 3.96 to 3.97 against the US dollar today.

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

The local note weakened against the British pound to 5.3336/3410 from 5.3078/3145 at Monday’s close, slipped against the euro to 4.6276/6340 from 4.6214/6272 previously, and eased against the Japanese yen to 2.4992/5028 from 2.4991/5024.

The ringgit also traded mostly lower against its regional peers.

It weakened against the Thai baht to 12.2053/2305 from 12.1646/1848 and depreciated against the Singapore dollar to 3.1056/1104 from 3.1036/1078 previously.

However, the local currency edged higher against the Indonesian rupiah to 224.7/225.1 from 224.8/225.1 previously.

The ringgit was little changed against the Philippine peso at 6.43/6.44 from 6.43/6.45 previously.

-- BERNAMA