KUALA LUMPUR, May 8 — The ringgit opened higher against most major currencies but eased against the US dollar as investors remained cautious following renewed escalation in the West Asia conflict, which dimmed hopes of a peace deal between the US and Iran.
At 8 am, the local currency traded at 3.9100/9200 against the greenback, compared with Thursday’s close of 3.9070/9115.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) remained relatively flat at around 98 points as market participants awaited the release of the latest US jobs data.
Meanwhile, he noted that the ringgit closed 0.42 per cent higher against the greenback at RM3.9093 yesterday after Bank Negara Malaysia (BNM) kept the overnight policy rate (OPR) unchanged at 2.75 per cent.
“They remain confident that strong economic fundamentals and sound economic policies will help the country sustain its growth momentum.
“Hence, a steady OPR should be ringgit-positive. On that note, expect the local currency to remain around RM3.90 against the greenback today,” he told Bernama.
At the opening, the ringgit traded higher against a basket of major currencies.
It strengthened against the euro to 4.5872/5989 from 4.5978/6031 at Thursday’s close, rose against the British pound to 5.3004/3140 from 5.3202/3263 previously, and strengthened against the Japanese yen to 2.4925/4990 from 2.4982/5013 yesterday.
The local currency was mostly higher against regional peers.
It appreciated against the Singapore dollar to 3.0807/0890 from 3.0861/0901 at yesterday’s close and strengthened against the Thai baht to 12.1098/1479 from 12.1486/1687.
The local note traded almost flat against the Indonesian rupiah at 225.5/226.2 from 225.4/225.9, while there was little change against the Philippine peso at 6.474/6.490 from 6.466/6.480.
