adminKUALA LUMPUR: The ringgit strengthened to 3.97 against the United States (US) dollar at the close on Wednesday, as optimism returned after the US and Iran agreed to a two-week ceasefire plan for the West Asian conflict.
At 6pm, the local currency rose to 3.9735/9785 against the US dollar from 4.0275/0320 at yesterday’s close, thus returning below the psychological level of 4.00, with a daily increase today of 1.31 percent.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said US President Donald Trump had announced a two-week ceasefire against Iran following peace efforts by Pakistani leaders.
“The stronger performance of the ringgit is also supported by the prospect of the reopening of the Strait of Hormuz, which could help stabilise global oil supplies and ease pressure on energy prices.
“This development could also provide some temporary relief to the market, amid increasing economic uncertainty following shocks from conflicts in West Asia,” he told Bernama.
Bekiau said that although uncertainty was still high, Iran’s willingness to do so was a positive signal for future negotiations.
At the close of trading, the ringgit was higher against several major currencies.
The local unit rose against the euro to 4.6407/6465 from 4.6566/6618 at yesterday’s close and strengthened against the British pound to 5.3348/3415 from 5.3425/3484.
The ringgit also strengthened against the Japanese yen to 2.5071/5104 from 2.5229/5258.
At the same time, local currencies are mostly higher compared to ASEAN currencies.
The ringgit rose against the Singapore dollar to 3.1155/1199 from 3.1381/1419 at yesterday’s close, and rose against the Indonesian rupiah to 233.5/233.9 from 235.4/235.8.
The domestic currency was also almost unchanged against the Philippine peso at 6.68/6.70, and depreciated against the Thai baht to 12.4056/4282 from 12.3809/4021.
— BERNAMA
