KUALA LUMPUR, March 16 — The ringgit ended higher against the US dollar and other major currencies at the close on Monday as major central banks, including the US Federal Reserve, hold their policy meetings this week amid high crude oil prices, driven by the ongoing conflict in West Asia.
At 6pm, the local currency strengthened to 3.9260/9310 against the greenback from last Friday’s close of 3.9365/9410.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said Brent crude oil remained elevated at US$106.17 per barrel as the West Asia conflict rages on, raising concerns about oil and gas flows from the region.
“There was a second attack in three days at the United Arab Emirates port of Fujairah while US President Donald Trump has called for other nations to assist in the safe passage of vessels in the Strait of Hormuz,” he told Bernama.
At the time of writing, Brent Crude was 1.52 per cent higher at US$104.71 per barrel.
SPI Asset Management managing partner Stephen Innes said the firmer ringgit reflected stabilising regional and global risk sentiment, which pushed the greenback to marginal softness amid easing safe-haven demand.
“The market is (assessing) (oil) flows through the Strait of Hormuz, particularly shipments bound for India and China that appeared to be moving with some form of safe passage.
“At the same time, traders are weighing the effectiveness of the various stopgap measures being floated by the G7 countries, including coordinated strategic petroleum reserves (SPR) releases, and potential naval escorts for commercial shipping,” he added.
The ringgit rose against the Japanese yen to 2.4639/4672 from 2.4683/4715 at last Friday’s close, appreciated versus the British pound to 5.2008/2074 from 5.2214/2273, and strengthened vis-à-vis the euro to 4.4945/5002 from 4.5093/5144.
The local currency also traded higher against most Asean currencies.
It was firmer against the Singapore dollar at 3.0650/0692 from 3.0730/0767 at last Friday’s close, bounced versus the Thai baht to 12.0644/0857 from 12.1862/2062, and edged up vis-à-vis the Indonesian rupiah to 230.9/231.3 from 232.1/232.5.
The ringgit advanced against the Philippine peso to 6.55/6.56 from 6.59/6.60 previously. — Bernama
Malay Mail – Money
