Ringgit ends almost flat against US dollar

KUALA LUMPUR: The ringgit ended almost flat against the US dollar today as investors continued to favour the greenback amid geopolitical woes in the Middle East, an economist said.

At 6 pm, the local currency stood at 4.7345/7375 against the greenback from Monday’s close of 4.7340/7380.

SPI Asset Management managing partner Stephen Innes said ongoing uncertainties relating to the Middle East conflict are seen supporting the greenback, with broader escalation to drive more demand for the safe-haven currency.

“Risk sentiment appears tentatively to be taking hold, but this could swiftly change as investors are still grappling with the complex dynamics of the Middle East crisis and its potential repercussions on the global economy,” he told BK.

Meanwhile, Bank Muamalat Malaysia Bhd chief economist and social finance head Mohd Afzanizam Abdul Rashid noted that possible high-risk visit by US President Joe Biden to Israel could be the main focus of the market in light of the intensity of the military conflict in the region.

“This may prompt the demand for the safe-haven currency to continue to remain well supported,” he added.

Meanwhile, the ringgit traded mostly lower versus a basket of major currencies.

It depreciated vis-à-vis the British pound to 5.7595/7632 from 5.7494/7543 at Monday’s close and weakened versus the euro to 4.9973/5.0004 from 4.9858/9901, but improved against the yen to 3.1629/1651 from 3.1668/1697 yesterday.

Similarly, the local note was traded mostly lower against other Asean currencies.

The ringgit strengthened against the Thai baht to 13.0180/0319 from 13.0392/0549 at yesterday’s close and was little changed against the Indonesian rupiah at 301.2/301.5 from 301.0/301.5 previously.

It slipped against the Singapore dollar to 3.4566/4590 from 3.4560/4592 on Monday and inched down vis-a-vis the Philippine peso to 8.34/8.35 versus 8.33/8.34. – BK