Ringgit Edges Closer to RM4.00 on Peace Deal Hopes

KUALA LUMPUR : The ringgit extended its upward momentum, opening firmer on Monday against the US dollar and other major currencies, supported by improved risk sentiment following signs of easing geopolitical tensions.

At 8 am, the local note rose to 4.0430/0500 against the greenback from last Friday’s close of 4.0555/0600.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said news of the likely reopening of the Strait of Hormuz following the agreement between the United States and Iran on a peace deal to be signed on June 19 had boosted market sentiment.

“My sense is that the ringgit is moving towards the RM4.00 level against the US dollar. It may not happen immediately, but a sub-RM4.00 level would be consistent with the ringgit’s fair value given the prevailing macroeconomic conditions and the resilience of Malaysia’s economic growth,” he told Bernama.

At the opening, the local currency strengthened against a basket of major currencies.

It appreciated against the Japanese yen to 2.5275/5320 from 2.5334/5364 at last Friday’s close, climbed against the British pound to 5.4374/4468 from 5.4429/4489 and improved vis-à-vis the euro to 4.6911/6992 from 4.6979/7031 previously.

The ringgit was also stronger against regional peers.

It gained against the Singapore dollar to 3.1554/1611 from 3.1602/1640 last Friday and rose against the Thai baht to 12.4015/4298 compared with 12.4105/4288 previously.

It also recovered vis-à-vis the Indonesian rupiah to 226.3/226.8 from 227.0/227.4 and strengthened against the Philippine peso to 6.65/6.66 from 6.67/6.68 previously. – Bernama

Media Selangor