KUALA LUMPUR, 8 OCT – The Malaysian ringgit started trading today on a more positive note as it strengthened against the United States (US) dollar, driven by the rise in global Brent crude oil prices which passed the US$80 per barrel level, analysts said.
At 8 am, the ringgit rose to 4.2590/2865 against the US dollar from 4.2810/2880 recorded yesterday.
However, the Chief Economist of Bank Muamalat Malaysia Bhd, Dr Mohd Afzanizam Abdul Rashid expects the ringgit to continue to be affected by the tensions in the Middle East which have not yet subsided. At the same time, rising US Treasury bond yields also gave mixed signals for the ringgit.
Speak to Namedhe said other factors include the military conflict in the Middle East that could potentially trigger interest in risk aversion as well as US employment data that show the developed country’s economy is still resilient and justify a more modest monetary approach.
“The US dollar is expected to continue to rise in the near future. “Following this, the ringgit remains uncertain when the market is still nervous about the projected reduction in US interest rates and how the tension in the Middle East will develop,” he told Bernama.
Meanwhile, the Malaysian ringgit traded stronger against other major currencies, including rising against the euro to 4.6738/7040 from 4.6920/6996.
The Malaysian ringgit also rose against the Japanese yen to 2.8750/8937 from 2.8857/8909 yesterday and rose against the British pound to 5.5725/6085 from 5.5953/6044 previously.
The currency also performed better compared to ASEAN currencies such as strengthening against the Singapore dollar to 3.2661/2874 from 3.2832/2888 and rising against the Indonesian rupiah to 271.4/273.3 from 272.8/273.4 yesterday.
The Malaysian ringgit also strengthened against the Thai baht to 12.7153/8108 from 12.7948/8218, yesterday and rose against the Philippine peso to 7.50/7.55 from 7.54/7.55 previously. – Named
