Ringgit Rides Geopolitical Tensions to Higher Value Against Greenback

The Malaysian ringgit opened slightly higher against the US dollar on July 10 amid rising tensions in the Strait of Hormuz. The local currency strengthened to 4.0720/0815 against the greenback, up from Thursday's close of 4.0750/0795.

According to Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, the ringgit's gain was also supported by yesterday's Monetary Policy Committee statement. The MPC suggested that Malaysia's economy is on a stronger footing, with a sharp rise in electrical and electronics exports indicating growth in artificial intelligence and technology.

The ringgit traded higher against other major currencies at the opening, including the Japanese yen, British pound, euro, Singapore dollar, Indonesian rupiah, Thai baht, and Philippine peso.