Ringgit Gains Limited by Dollar's Safe-Haven Appeal
The Malaysian ringgit has strengthened against major currencies in early Monday trading, but its gains are limited by the US dollar's persistent strength. The dollar remains well-bid due to ongoing geopolitical uncertainty, particularly after President Donald Trump rejected an Iranian proposal to reopen the Strait of Hormuz to commercial shipping.
Mohd Afzanizam, chief economist at Bank Muamalat Malaysia, noted that geopolitical risk will continue to shape market sentiment. He added that investors are also eyeing US labor market data for fresh signals on the trajectory of the world's largest economy.
The ringgit traded at 4.0725/0780 per dollar, edging down from Friday's close of 4.0715/0765. It strengthened to 4.6333/6395 per euro and advanced to 5.3867/3940 against the British pound.
The Strait of Hormuz standoff remains a dominant market theme, with any escalation potentially driving oil prices higher and complicating inflation outlooks across Asia. For Malaysia, a net oil exporter, elevated crude prices offer some fiscal relief but also risk stoking imported inflation through higher energy costs.