KUALA LUMPUR, April 14 — The ringgit jumped 135 basis points to rebound to the 3.96 level against the United States dollar at the open today, supported by improved global risk sentiment amid expectations of a potential second-round negotiation between the US and Iran.
At 8am, the ringgit appreciated to 3.9600/9715 against the US dollar from 3.9735/9805 at yesterday’s close.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said recent developments in the global oil market, following news that there will be a second round of US-Iran negotiations soon, have dragged West Texas Intermediate (WTI) and Brent crude oil prices to below US$100 per barrel.
“The news sparked hope that an amicable solution could be achieved, although it could also be elusive,” he told Bernama.
On the US dollar, which is deemed a safe-haven currency, Afzanizam said the two- and 10-year US Treasury yields fell by two basis points to 3.77 per cent and 4.29 per cent, respectively. In the same vein, the US Dollar Index (DXY) declined 0.23 per cent to 98.425 points.
“In that sense, there appears to be a risk-on mode, although that may be quite tentative given the evolving nature of the negotiations.
“The ringgit may stage a slight rebound but should remain in a narrow range of RM3.96 to RM3.98 today,” he added.
Despite trading firmer against the greenback, the ringgit was mostly lower against a basket of major currencies at the open.
It fell against the British pound to 5.3515/3671 from 5.3360/3454 and weakened against the euro to 4.6589/6725 from 4.6434/6516.
Against the Japanese yen, it rose to 2.4867/4940 from 2.4875/4920 at yesterday’s close.
The local note traded mostly higher against ASEAN currencies.
It increased versus the Singapore dollar to 3.1105/1205 from 3.1145/1205, was higher against the Indonesian rupiah to 231.5/232.3 from 232.2/232.8 and gained against the Philippine peso to 6.58/6.60 from 6.60/6.62 at yesterday’s close.
The local note depreciated against the Thai baht to 12.3623/4071 from 12.3202/3503.
