KUALA LUMPUR: The ringgit opened higher against the US dollar on Tuesday following uncertainties in the Strait of Hormuz which increased global crude oil prices, said analysts.
At 8am, the local unit rose to 4.0675/0730 against the US dollar from 4.0680/0730 at the close on Monday.
Bank Muamalat Malaysia Bhd Chief Economist Mohd Afzanizam Abdul Rashid said the situation in the Strait of Hormuz would be the main focus at the moment, with crude oil prices such as WTI and Brent increasing by 9.42 per cent and 9.35 per cent to US$78.14 per barrel and US$83.12 per barrel respectively.
Meanwhile, he said the yields on the two-year and 10-year US Treasury bonds rose by eight and six basis points to 4.28 percent and 4.62 percent respectively as inflation is expected to continue to rise, thus reinforcing expectations that the US Federal Reserve may raise policy rates this year.
“This expectation has increased the US Dollar Index (DXY) to 101.276 points.
“In this situation, emerging market currencies including the ringgit are expected to continue to fluctuate in the near term. Therefore, the ringgit exchange rate against the US dollar is expected to be in the range of 4.07 to 4.10 today,” he told Bernama .
At the opening of trading, the ringgit traded higher against a basket of major currencies.
The ringgit strengthened against the Japanese yen to 2.5040/5075 from 2.5110/5142 at Monday’s close, rose against the British pound to 5.4297/4370 from 5.4475/4542 and rose against the euro to 4.6296/6359 from 4.6501/6558.
The ringgit, on the other hand, was traded mixed against ASEAN currencies.
The local unit rose against the Singapore dollar to 3.1417/1464 from 3.1489/1530 and strengthened against the Thai baht to 12.1396/1618 from 12.1953/2151.
However, the ringgit was unchanged against the Indonesian rupiah at 224.6/225.0 and remained flat against the Philippine peso at 6.60/6.62 compared to yesterday’s close.
— BERNAMA
