KUALA LUMPUR, Apr 20 — The ringgit opened almost flat against the US dollar today as investors sought shelter in safe-haven assets, with the greenback seen as one of the options to preserve capital.
At 8 am, the local currency eased to 3.9520/9600 against the US dollar from 3.9505/9545 at last Friday’s close.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said West Texas Intermediate (WTI) and Brent crude prices climbed 7.29 per cent and 6.07 per cent to US$89.96 per barrel and US$95.87 per barrel, respectively, as the situation in West Asia remains highly fluid.
“The Strait of Hormuz was closed again shortly after the Iranian government announced its reopening on Saturday,” he told Bernama.
He said the US dollar index (DXY) was trending upward, rising 0.19 per cent to 98.282 points this morning.
“On that note, the ringgit is likely to stay weak today. Time is also running short, as the two-week ceasefire will end this week.
“The immediate concern now is whether the ceasefire can be extended further to allow more diplomatic discourse to take place. For now, it’s going to be risk-off mode,” he added.
At the opening, the ringgit traded higher against a basket of major currencies.
It strengthened against the British pound to 5.3289/3397 from 5.3454/3508 at last Friday’s close, rose against the euro to 4.6412/6506 from 4.6588/6635, and gained against the Japanese yen to 2.4832/4884 from 2.4838/4865.
The local currency traded mixed against its ASEAN peers.
It climbed against the Singapore dollar to 3.1033/1100 from last Friday’s close of 3.1053/1086, depreciated against the Thai baht to 12.3096/3418 from 12.3084/3274, edged down against the Indonesian rupiah to 229.9/230.4 from 229.8/230.1, and was flat against the Philippine peso at 6.58/6.60 from 6.58/6.59.
