The ringgit opened stable against the US dollar this morning after geopolitical tensions between the United States (US) and Iran eased, giving strength to the US dollar.
At 10:40 am, the ringgit was trading at 3.9440, unchanged at 0.00% against the US dollar since opening early Friday in the Asian session.
Media reports indicated that the US is scheduled to hold talks in Oman on Friday following the drone attacks by Iran earlier this week.
Director of Investment Strategy and National Economist of IPPFA Sdn Bhd, Mohd Sedek Jantan explained that weaker US labor market data including a decline in job openings, an increase in layoffs and unemployment benefit claims had strengthened demand for Treasuries, thus pushing yields lower overnight.
He noted that the US dollar remained strong following the lack of clear signs of monetary policy easing by the Federal Reserve (Fed).
This situation occurred because the market was expecting a slowdown in economic growth without an immediate policy shift (pivot).
Meanwhile, Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said Atlanta Fed President Raphael Bostic maintained a hawkish stance on inflation to maintain tight policy.
At the opening, the ringgit was traded mixed against other major currencies.
It weakened against the euro to 4.6527/6645 from 4.6460/6572 yesterday, depreciated against the Japanese yen to 2.5199/5265 from 2.5068/5130, but rose against the British pound to 5.3418/3553 from 5.3496/3625 previously.
The ringgit was also traded lower against ASEAN currencies.
It declined against the Thai baht to 12.4074/4458 from 12.3955/4320 and depreciated slightly against the Indonesian rupiah to 234.5/235.3 from 234.1/234.8.
It also fell against the Philippine peso to 6.73/6.75 from 6.72/6.74 and eased against the Singapore dollar to 3.0969/1052 from 3.0943/1020 previously.
