Ringgit Rebounds to 4.02 Against US Dollar as Hormuz Supply Concerns Ease
KUALA LUMPUR — The Malaysian ringgit strengthened to the 4.02 level against the US dollar at Friday’s close, supported by easing concerns over potential supply disruptions in the Strait of Hormuz.
At 6pm, the local currency improved to 4.0295/0350 against the greenback, compared with 4.0365/0430 recorded at the previous close.
According to Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, the ringgit gained ground as market sentiment improved following indications of resumed energy transit through the strategic shipping route.
He noted that the USD/MYR pair was hovering around RM4.0305, with the ringgit appreciating by approximately 0.23 per cent, while the US Dollar Index (DXY) remained below the 100-point level.
“The easing of tensions surrounding energy supply routes has provided support to the ringgit, as confidence gradually returns to the market,” he said.
Reports from Iran indicated that discussions are underway between Iran and Oman to establish a monitoring protocol for shipping activities in the Strait of Hormuz, aimed at ensuring safe passage and uninterrupted transit.
At the close, the ringgit traded mostly higher against major currencies.
It strengthened against the Japanese yen to 2.5247/5285 from 2.5295/5337, and edged up against the euro to 4.6513/6576 from 4.6517/6592 previously.
However, it weakened against the British pound, falling to 5.3326/3399 from 5.3278/3364.
Against regional currencies, the ringgit showed mixed performance.
It rose slightly against the Singapore dollar to 3.1341/1389 from 3.1364/1417, but weakened against the Philippine peso to 6.68/6.71 from 6.66/6.68.
The local currency also slipped against the Indonesian rupiah to 237.4/237.9 from 236.9/237.3, and declined against the Thai baht to 12.3585/3841 from 12.3180/3447.
Overall, regional currencies remained under pressure against the US dollar, reflecting cautious sentiment in global financial markets despite recent improvements in geopolitical developments.
-wilayah.com.my
