Ringgit opens higher as hopes of US-Iran talks ease oil price pressure

 

KUALA LUMPUR, April 16 — The ringgit opened marginally higher against the US dollar today, supported by optimism that renewed US-Iran talks could ease tensions along key global oil routes.

At 8 am, the local currency edged up to 3.9510/9570 against the greenback, from 3.9550/9600 at yesterday’s close.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said markets were pinning hopes on a second round of US-Iran talks delivering an outcome that could reopen the Strait of Hormuz and further de-escalate the conflict.

He added that inflation concerns, driven by war-related pressures on US firms and rising US Treasury yields, would keep borrowing costs elevated, as the US Federal Reserve may be reluctant to cut interest rates.

“Expect ringgit versus the US dollar to remain in a narrow range of between RM3.95 and RM3.97 today,” he told Bernama.

At press time, West Texas Intermediate and Brent crude prices had both fallen below US$100 per barrel, easing 0.58 per cent and 0.36 per cent to US$90.76 and US$94.59, respectively.

At the opening, the ringgit traded mixed against a basket of major currencies.

It weakened against the British pound to 5.3627/3708 from 5.3614/3682 at Wednesday’s close, slipped versus the euro to 4.6649/6720 from 4.6594/6653, but strengthened against the Japanese yen to 2.4879/4918 from 2.4890/4923.

Meanwhile, the local currency traded mostly higher against its ASEAN peers.

It edged up against the Singapore dollar to 3.1093/1143 from 3.1095/1139 on Wednesday, improved versus the Indonesian rupiah to 230.4/230.9 from 230.7/231.0, and rose against the Philippine peso to 6.57/6.59 from 6.58/6.59 previously.

However, the ringgit weakened against the Thai baht to 12.3415/3676 from 12.3098/3330 yesterday. — Bernama