The Malaysian ringgit performed steadily at 3.97 against the United States (US) dollar at the opening session on Thursday, driven by increased market confidence following the announcement of a two-week ceasefire plan.
At 10:07 am, the ringgit was at 3.9800 against the USD, down 0.15% since it opened early Thursday in Asian trading.
This situation prompted investors to reconsider riskier assets that could potentially yield higher returns.
According to Bank Muamalat Malaysia Bhd Chief Economist Mohd Afzanizam Abdul Rashid, the US Dollar Index (DXY) was at 99.013 this morning, down 0.85 percent and remaining below the 100 level, indicating a weaker US dollar supporting the strengthening of the ringgit.
The ringgit yesterday closed with a gain of 1.33 percent to 3.9735 against the US dollar.
However, Mohd Afzanizam stressed that market conditions remain fragile and any violation of the ceasefire plan could put sudden pressure on crude oil prices and affect market sentiment.
USD/MYR is expected to move in a narrow range today, as traders and investors continue to monitor compliance with the ceasefire agreement.
In the opening session, the ringgit strengthened against several major currencies, including the Japanese yen to 2.5041/5159 from 2.5071/5104 on Wednesday, the euro to 4.6317/6533 from 4.6407/6465, and the pound Sterling to 5.3202/3450 from 5.3348/3415.
Against ASEAN currencies, its performance was mixed.
The ringgit edged down against the Singapore dollar to 3.1168/1316 from 3.1155/1199, but rose against the Thai baht to 12.3769/4427 from 12.4056/4282.
The local currency was little changed against the Philippine peso at 6.68/6.72 from 6.68/6.70 and was little changed against the Indonesian rupiah at 233.5/234.7 from 233.5/233.9.
