KUALA LUMPUR, May 28 — The ringgit opened mostly higher against major currencies today but eased slightly against the US dollar as investors remained cautious over ongoing US-Iran negotiations.
At 8 am, the local currency slipped to 3.9670/9770 against the greenback from Tuesday’s close of 3.9660/9705.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid told Bernama that uncertainties surrounding the conflict in Iran continue to dominate market sentiment, despite major equity markets such as the US reaching record highs.
“There are conflicting signals. The Iranian state news agency appears to suggest that negotiations are progressing well. However, US President Donald Trump remains hostile, especially with his remarks on the Straits of Hormuz, saying that no country should control it,” he said.
At the same time, he said there are concerns over rising inflation, which could force the US Federal Reserve (Fed) to raise interest rates. Positive corporate earnings and optimism surrounding AI-related investments continue to support market sentiment.
Among the world’s two main oil pricing benchmarks, West Texas Intermediate (WTI) rose 1.40 per cent to US$89.92 per barrel, while Brent crude declined 5.31 per cent to US$94.29 per barrel.
Meanwhile, the US Dollar Index (DXY) hovered around 99.21 points, slightly higher by 0.04 per cent.
“Hence, we expect the ringgit-US dollar pair to trade around RM3.95 to RM3.97 today,” he said.
At the opening, the ringgit traded higher against a basket of major currencies.
It strengthened against the Japanese yen to 2.4859/4925 from 2.4917/4947 at Tuesday’s close, rose against the euro to 4.6089/6205 from 4.6172/6225 and gained versus the British pound to 5.3217/3351 from 5.3470/3530 previously.
The local currency also improved against the Thai baht to 12.1445/1818 from 12.1485/1675 at Tuesday’s close, but weakened slightly against the Singapore dollar to 3.1041/1121 from 3.1038/1075.
The ringgit was unchanged against the Philippine peso and Indonesian rupiah at 6.44/6.46 and 222.8/223.5 respectively.
