At 8am, the local note eased to 3.9695/3.9960 against the US dollar from 3.9625/3.9680 at last Friday’s close.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the ringgit’s near-term performance is likely to remain cautious amid heightened geopolitical tensions and shifting market sentiment.
“Risk aversion among traders is becoming more pronounced following stalled negotiations between the US and Iran. Historically, such developments tend to trigger safe-haven demand for the greenback,” he noted.
He said the shift in sentiment follows escalating geopolitical risks, including reports that US president Donald Trump is considering a blockade of the Strait of Hormuz, a move aimed at pressuring Iran’s economy via the oil and gas trade, which has pushed both WTI and Brent crude benchmarks above US$100 per barrel this morning.
Afzanizam said the development has also strengthened the US dollar, with the US Dollar Index (DXY) rising 0.47% to 99.115 points.
“Therefore, it is going to be a risk-off mode today, and the ringgit could see depreciation against the greenback and perhaps revisit the RM4.00 level,” he added.
It was reported that the US Central Command would begin implementing a blockade of all maritime traffic entering and exiting Iranian ports on April 13 at 10am (Eastern US Time), to be enforced impartially against vessels of all nations across Iranian ports and coastal areas, including those along the Arabian Gulf and the Gulf of Oman.
At the opening, the ringgit traded higher against a basket of major currencies.
It rose against the British pound to 5.3167/5.3522 compared with 5.3248/5.3322, improved against the Japanese yen to 2.4858/2.5025 from 2.4882/2.4918, and strengthened against the euro to 4.6344/4.6653 from 4.6401/4.6465, from last Friday’s close.
However, the local currency opened mixed against Asean currencies.
It appreciated versus the Singapore dollar to 3.1065/3.1275 from 3.1093/3.1139 and rose to 12.2587/12.3493 from 12.3289/12.3525 against the Thai baht. However, against the Indonesian rupiah, it fell to 232.0/233.7 from 231.6/232.0, and was lower against the Philippine peso at 6.61/6.66 from 6.60/6.62 previously.