The ringgit opened mixed against major currencies, with the US dollar strengthening as crude oil prices remained elevated after the Strait of Hormuz reopened.
KUALA LUMPUR:The ringgit opened mixed against a basket of major currencies on Tuesday, while the US dollar strengthened amid elevated crude oil prices following the reopening of the Strait of Hormuz.
At 8am, the local currency traded at 4.0900/0975 against the greenback from yesterday’s close of 4.0885/0930.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US dollar index (DXY) is currently 0.27 per cent higher at 99.811 points.
He noted that US President Donald Trump is pushing back on Iran’s compensation demand, saying that Tehran should be held responsible for the damage across the region.
“The news appears to be dollar-positive as it could improve the odds of a rate hike in the upcoming SeptemberFederal Open Market Committee (FOMC).
“As such, we expect the ringgit to remain in a range-bound trade in light of the conflicting signal, whereby the weak US jobs data last Friday has failed to weaken the American currency,” he told Bernama.
Meanwhile, the local currency traded mostly higher against a basket of major currencies.
It rose against the Japanese yen to 2.5696/5746 from 2.5736/5766at Monday’s close, strengthened against the euro to 4.7223/7310 from 4.7247/7299, while easing vis-a-vis the British pound to 5.5260/5361 from 5.5170/5231 previously.
However, the ringgit traded mixed against regional currencies.
It was firmer against the Singapore dollar to 3.1943/2004 from 3.1961/2002 but easedversus the Thai baht to 12.3921/4204 from 12.3894/4079 at yesterday’sclose.
Meanwhile, the ringgit was little changed againstthe Indonesian rupiah to 230.3/230.8 versus 230.2/230.6 previously, while almost flat against the Philippine peso at 6.73/6.75 from 6.73/6.74.
