Ringgit opens higher against major currencies, eases vs US$
The Malaysian ringgit opened higher against most major currencies but weakened against the US dollar due to investor caution regarding US-Iran tensions. Rising oil prices and US Treasury yield fluctuations are currently influencing market sentiment.
Why it matters
Currency fluctuations reflect broader global economic anxieties and the impact of geopolitical conflicts on emerging markets.
KUALA LUMPUR: The ringgit opened higher against most major currencies but eased slightly against the US dollar on Friday as investors turned cautious amid escalating tensions between the United States (US) and Iran, an economist said.
At 8 am, the local currency eased slightly to 4.0430/0500 against the greenback from Thursday’s close of 4.0425/0470.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US government was seeking to isolate Iran economically and was expected to announce such measures in the near term.
Mohd Afzanizam said the development had led to a 1.75 per cent increase in Brent crude prices to US$93.22 a barrel.
"At the same time, the US government is also expanding its efforts to buy back US Treasuries to suppress Treasury yields from rising.
"The 30-year US Treasury yield rose six basis points to 5.25 per cent,” he told Bernama.
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