Ringgit Buoys Against Majors Amid Geopolitical Tensions

The Malaysian ringgit opened mostly higher against major currencies on Monday morning, but slightly lower against the US dollar. The exchange rate was affected by geopolitical uncertainties that have driven up demand for the greenback.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid pointed out that these risks will continue to shape market sentiment. He noted that US President Donald Trump's rejection of Iran's proposal to reopen the Strait of Hormuz is a key factor in this.

The ringgit gained against the euro, advancing to 4.6333/4.6395 from Friday's close of 4.6378/4.6435. It also strengthened against the British pound, rising to 5.3867/5.3940 from 5.3907/5.3973.

However, it eased versus the Japanese yen, dropping to 2.5864/2.5900 from 2.5764/2.5797 previously. Against Asean currencies, the ringgit was up against the Singapore dollar and the Thai baht, but unchanged against the Indonesian rupiah and the Philippine peso.