Ringgit Rises as Oil Prices Fall, Geopolitical Tensions Ease
The Malaysian ringgit strengthened against major currencies on Tuesday, driven by improved market sentiment following easing global oil prices and geopolitical developments.
Brent crude oil prices fell 3.4% to $100.34 per barrel after satellite data showed Saudi Arabia shifted its oil exports via the Strait of Hormuz following the East-West pipeline disruption. The country's exports increased to about 2.9 million barrels per day, up from around 700,000 in August.
According to Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid, US President Donald Trump's willingness to meet the Iranian President during the UN General Assembly this week suggests positive developments regarding the war in West Asia.
The ringgit traded higher against a basket of major currencies, gaining 0.1% against the euro to 4.6716/6779 and advancing vis-à-vis the British pound to 5.4475/4548.