MALAYSIA: The ringgit opened higher against the US dollar on Friday as traders adopted a cautious stance amid escalating geopolitical tensions, an analyst said.
At 8 a.m., the local currency rose to 3.8965/3.9160 against the greenback, compared with 3.9045/3.9125 at yesterday’s close.
This comes at a time when traders are closely monitoring global financial markets due to proceedings with the US-Iran nuclear deal.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said that risk-off sentiment had consequently become increasingly evident, likely due to these developments.
“US President Donald Trump has set a 10-day deadline to conclude negotiations. At the same time, there are reports of US military forces building up in the Middle East,” he said, as quoted by Bernama.
Afzanizam added that the US dollar-ringgit pair is expected to trade between RM3.91 (S$1.27) and RM3.93 since markets remain cautious of further escalation.
Ringgit gains against Singapore dollar
At the opening, the ringgit traded higher against multiple ASEAN currencies, including the Singapore dollar. The local note strengthened to 3.0732/3.0887 against the Singapore dollar, compared with 3.0817/3.0882 previously.
This comes at a time when the value of the ringgit against the Singapore dollar has been steadily rising, as previously reported by The Independent Singapore.
For Singaporeans who frequently travel to Johor Bahru for shopping, dining and petrol, a firmer ringgit means the Singapore dollar converts into slightly fewer Malaysian ringgit.
At the end of the day, while the movement is modest, sustained strengthening could gradually narrow the exchange-rate advantage that underpins many cross-border trips.
Additionally, compared to other currencies, the ringgit also appreciated against the Japanese yen to 2.5126/2.5250 from 2.5221/2.5275, rose versus the euro to 4.5880/4.6103 from 4.6073/4.6168, and strengthened against the British pound to 5.2469/5.2725 from 5.2730/5.2838.
Against its ASEAN peers, the ringgit advanced versus the Thai baht to 12.4944/12.5657 from 12.5196/12.5521, edged up against the Indonesian rupiah to 230.8/232.0 from 231.1/231.6, and rose against the Philippine peso to 6.72/6.76 from 6.73/6.75.
With geopolitical risks and shifting US economic signals in play, currency markets are likely to remain volatile in the near term. These global developments, in turn, inevitably affect regional currencies, including the ringgit.
For Singapore, this steady increase remains notable. For now, the movement remains slow, but small increments can add up to a significant value, especially for those who plan to visit Johor Bahru this weekend for shopping trips, getaways, and fuel top-ups.
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