KUALA LUMPUR, Oct 13 — The ringgit edged higher against the United States dollar at the open, buoyed by optimism around Budget 2027.
At 8am, the ringgit was up marginally against the greenback to 4.0815/0900 from yesterday’s close of 4.0820/0865.
However, Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam said heightened geopolitical risk in West Asia and the anticipation of higher US inflation are expected to support the US dollar.
He told Bernama that missile attacks on Riyadh suggest the possibility of a wider conflict, leading to further disruption to crude oil supplies.
“Brent crude oil prices have already risen by 1.38 per cent to US$106.16 per barrel. Thus far, the US Dollar Index (DXY) has risen by 0.35 per cent to 102.573 points, while the US Consumer Price Index (CPI) inflation rate, to be released (tomorrow), is expected to increase to 3.6 per cent in September (August: 3.4 per cent), based on consensus estimates.
“On that note, the ringgit will likely continue trading within a narrow range,” Afzanizam said.
At the open, the ringgit traded mostly firmer against a basket of major and ASEAN currencies.
The local note fell against the Japanese yen to 2.5748/5803 from 2.5739/5769 at yesterday’s close, climbed against the British pound to 5.3913/4025 from 5.4017/4077, and strengthened against the euro to 4.5545/5640 from 4.5637/5687 at yesterday’s close.
Against its ASEAN peers, the local note edged up against the Indonesian rupiah to 227.8/228.4 from 227.9/228.2, but was almost flat against the Philippine peso at 6.50/6.52 compared with 6.50/6.51 at yesterday’s close.
The ringgit edged up against the Singapore dollar to 3.1864/1933 from 3.1873/1911 at yesterday’s close and strengthened against the Thai baht to 12.1318/1628 from 12.1391/1568.
