Ringgit higher against US dollar in early session

KUALA LUMPUR: The ringgit was higher against the US dollar in the early session today on better demand for the local note, in line with most regional currencies due to easing US-Iran tensions.

As at 9.11am, the ringgit was at 4.0900/0930 against the US dollar from 4.1000/1030 at yesterday’s close.

A dealer said market sentiment towards Asian currencies, including the ringgit, was lifted after US President Donald Trump commented that the United States would back away from further military action against Iran.

“This helped ease investors’ concerns on further escalation of geopolitical risks in the Middle East, and subsequently improved their risk appetite,” he added.

However, Finance Minister Lim Guan Eng yesterday said that Malaysia has an economic contingency plan in place if the global trade war worsens, which could be adopted should the ongoing US-Iran conflict escalate.

Lim said the geopolitical conflict was one of the topics discussed during the Cabinet meeting earlier on Wednesday, with concerns over stability and whether it will affect global economic growth.

Meanwhile, the ringgit was traded higher against a basket of major currencies.

It rose against the Singapore dollar to 3.0285/0319 from 3.0364/0390 and increased against the Japanese yen to 3.7440/7478 from 3.7805/7837.

The local note appreciated against the British pound to 5.3604/3647 from 5.3780/3835 and was higher against the euro at 4.5452/5498 from 4.5662/5712.