KUALA LUMPUR, March 9 — The ringgit opened lower against the US dollar today as heightened risk aversion strengthened the greenback, following a sharp surge in Brent crude oil prices.
At 8 am, the local currency slipped to 3.9550/9800 against the US dollar from Friday’s close of 3.9425/9535.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said Brent crude rose 37.7 per cent in a week to US$107.04 per barrel, up from US$77.74, after Iran named Mojtaba Khamenei as its new supreme leader.
“Following the risk-off sentiment, the US Dollar Index (DXY) rose 0.52 per cent to 99.496 points. Emerging market currencies, including the ringgit, are likely to remain weak in the near term amid fragile market sentiment,” he told Bernama.
He added that risks of a wider regional conflict had intensified after Bahrain’s water desalination plant sustained material damage in an Iranian drone attack. Meanwhile, the United States and Israel are expected to escalate military action against Iran.
“Economic data may have taken a back seat as unfolding events in the Middle East are expected to have a material impact on global inflation and growth. Based on technical charts, the prevailing resistance and support levels for the US dollar-ringgit pair are RM4.0285 and RM3.8800, respectively,” he said.
At the open, the ringgit traded mixed against other major currencies. It weakened against the British pound to 5.2621/2954 but strengthened against the euro to 4.5577/5866 and edged up against the Japanese yen to 2.4967/5126.
Against ASEAN currencies, the local note rose versus the Thai baht to 12.3312/4169 but fell against the Singapore dollar to 3.0788/0987, slipped versus the Indonesian rupiah to 233.6/235.2, and eased against the Philippine peso to 6.70/6.75.
