Ringgit Weakened as West Asia Tensions Fuel Oil Price Surge
The ringgit closed slightly lower against the US dollar on Thursday as escalating tensions in West Asia fueled expectations of a potential United States interest rate hike, supporting the greenback.
At 6pm, the local currency eased to 4.0870/0910 versus the greenback from yesterday's close of 4.0850/0890, according to Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid.
The surge in crude oil prices has also raised questions over how global central banks would respond to the oil price shock, with some jurisdictions potentially resorting to tighter monetary policy to contain inflationary pressures.
The West Texas Intermediate (WTI) and Brent crude prices rose 3.19 per cent and 4.23 per cent to US$89.60 per barrel and US$98.05 per barrel respectively, Dr Mohd Afzanizam noted.