The ringgit opened higher against the US dollar and several other major currencies on Thursday, reflecting investor optimism over the possibility of a resolution to the geopolitical tensions plaguing the region.
However, market sentiment remained cautious as global conditions have yet to fully stabilize.
At 10:30am, the ringgit was trading at 4.0200, up 0.10% against the US dollar since opening early Thursday in the Asian session.
IPPFA Sdn Bhd Investment and Economic Strategy Director Mohd Sedek Jantan explained that attention is now focused on the speech by US President Donald Trump, scheduled for 9am Malaysia time.
The market is expected to look for clues on steps to ease tensions in the Middle East and the possible reopening of the Strait of Hormuz, a key route for global energy flows.
Mohd Sedek said investors are waiting for clarity on the terms of the efforts to ease tensions, and most importantly, market stability and the reopening of the Strait of Hormuz.
He also stressed that despite the weak US dollar and strong gold prices, investors still tended to choose safe assets rather than fully returning to risky assets, indicating cautious optimism.
Apart from the US dollar, the ringgit also showed strengthening against other major currencies.
The ringgit rose against the British pound to 5.3430/3696 from 5.3507/3580, strengthened against the Japanese yen to 2.5309/5436 from 2.5358/5394, and rose against the euro to 4.6553/6785 from 4.6666/6730 previously.
At the ASEAN level, the ringgit traded higher against most regional currencies.
It rose against the Singapore dollar to 3.1305/1465, edged up against the Philippine peso to 6.67/6.71, and strengthened against the Indonesian rupiah to 236.5/237.8.
However, the ringgit weakened slightly against the Thai baht to 12.3126/3823 from 12.2726/2926 previously.
