The ringgit opened slightly lower against the US dollar today after the local currency is expected to remain under pressure amid rising geopolitical tensions in the Middle East.
At 9:40 am, the ringgit was trading at 3.9490, down 0.15% against the US dollar since opening early Wednesday in the Asian session.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) continued to rise as the international community focused on the impact of the closure of the Strait of Hormuz.
He also stressed that China, which has been dependent on imports from the Middle East, has urged all parties to protect ships passing through the area.
Meanwhile, United States (US) President Donald Trump also assured that tanker escorts would be provided to allow the flow of oil and gas.
According to Mohd Afzanizam, the ringgit is expected to continue to weaken as traders tend to seek safe haven assets in the US dollar following risk aversion sentiment.
At the open, the ringgit traded mixed against a basket of currencies.
It rose against the euro to 4.5736/4.5904 from 4.5778/4.5842 yesterday, rose slightly against the Japanese yen to 2.4964/2.5059 from 2.5010/2.5048, but fell against the British pound to 5.2590/5.2783 from 5.2451/5.2524.
The ringgit was also traded lower against ASEAN currencies.
It rose against the Singapore dollar to 3.0841/3.0959 from 3.0863/3.0909 and was unchanged against the Indonesian rupiah at 233.4/234.4 from 233.7/234.2 previously.
However, it depreciated against the Thai baht to 12.4652/12.5222 from 12.4401/12.4637 and fell against the Philippine peso to 6.75/6.76 from 6.74/6.76 previously.
