The ringgit opened slightly lower against the US dollar earlier this week as investors continued to shift to safe-haven assets amid uncertainty over the ongoing conflict in the Middle East.
At 9:46 am, the ringgit was trading at 4.0140, down 0.05% against the US dollar since opening early Monday in the Asian session.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the foreign exchange market was likely in risk-aversion mode as uncertainty over the US-Iran war continued to weigh on market sentiment.
He also noted that the rise in the US Dollar Index (DXY) to 100.328 points reflected investors' tendency to shift to the US dollar as a safe-haven asset.
In other developments, leading bond fund managers such as PIMCO and JP Morgan are expecting an increase in bond prices following warnings that the current conflict risks stunting economic growth.
According to Mohd Afzanizam, the market will now be watching the US (US) labour market data, the NFP employment data this Friday.
At the opening, the ringgit traded higher against a basket of currencies.
It rose against the British pound to 5.3101/5.3340 from 5.3368/5.3414, surged against the Japanese yen to 2.5044/2.5158 from 2.5084/2.5109 and rose against the euro to 4.6108/4.6314 from 4.6197/4.6237 previously.
Meanwhile, the ringgit traded stronger against ASEAN currencies.
It gained against the Singapore dollar to 3.1100/3.1244 from 3.1164/3.1194 and rose against the Thai baht to 12.1624/12.2255 from 12.1903/12.2077.
However, it fell slightly against the Indonesian rupiah to 236.3/237.4 from 236.1/236.5 and remained unchanged against the Philippine peso at 6.62/6.66 from 6.62/6.63 previously.
