The ringgit opened higher against the US dollar and most major currencies on Tuesday, supported by a defensive market mood amid heightened geopolitical risks.
At 8am, the local currency stood at 4.0800/0865 against the US dollar, slightly firmer than Monday’s close of 4.0805/0845.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said Brent crude remained above US$106 (RM432) a barrel on Monday as tensions between the United States and Iran continued.
He said the elevated oil prices had kept concerns over energy-driven inflation in focus.
“Meanwhile, US Treasury yields rose significantly, with two-year and 10-year yields at around 4.9% and 5.2% respectively,” he told Bernama.
Mohd Afzanizam said higher US Treasury yields could increase the relative attractiveness of US dollar-denominated assets and potentially limit demand for emerging market currencies, including the ringgit.
Against other major currencies, the ringgit strengthened against the euro to 4.6390/6464 from 4.6416/6461 at Monday’s close.
It also rose against the British pound to 5.4072/4158 from 5.4099/4152 and gained against the Japanese yen to 2.5928/5971 from 2.5994/6021.
Against selected ASEAN currencies, the ringgit weakened against the Singapore dollar to 3.1937/1991 from 3.1914/1948.
It was little changed against the Philippine peso at 6.52/6.54 compared with 6.52/6.53 previously.
The ringgit was also largely unchanged against the Indonesian rupiah at 226.9/227.3 compared with 226.9/227.2.
However, the local currency strengthened against the Thai baht to 12.1338/1589 from 12.1429/1588 previously.
