Ringgit Ends Firmer As Safe Haven Demand For US Dollar Fades
By Rosemarie Khoo Mohd Sani
KUALA LUMPUR, July 10 (Bernama) -- The ringgit ended the week on a stronger note against the US dollar on Friday, as safe-haven demand for the greenback faded.
At 6 pm, the local currency climbed to 4.0695/0745 against the US dollar from 4.0750/0795 at Thursday's close.
AmBank Group FX strategist Yim Soon Kah told Bernama that the weaker US dollar was driven by reports that US and Iranian mediators would continue peace negotiations despite the recent military escalation, reducing demand for the greenback as a safe-haven currency and for higher-yielding US Treasuries.
On the domestic front, he noted that the market reaction was generally neutral following yesterday's Monetary Policy Committee (MPC) meeting, with Bank Negara Malaysia keeping the overnight policy rate (OPR) unchanged, in line with market expectations.
SPI Asset Management managing partner Stephen Innes said the ringgit had reversed some of its recent risk-off weakness after the United States launched extensive air strikes in response to Iran's missile attacks on three energy tankers.
He said the local currency's rebound had been supported by easing oil prices, suggesting that markets were not yet pricing in a prolonged escalation in West Asia. "As geopolitical concerns have moderated, some of the safe-haven demand for the US dollar has faded," Innes told Bernama.
At the close, the ringgit traded mostly higher against a basket of major currencies.
It was lower against the Japanese yen at 2.5148/5181 from 2.5091/5120 at Thursday's close, but appreciated against the British pound to 5.4572/4639 from 5.4654/4714, and strengthened against the euro to 4.6502/6559 from 4.6581/6633.
The ringgit traded mostly lower against regional currencies.
It marginally dropped against the Singapore dollar to 3.1520/1561 from 3.1518/1558 at Thursday's close and depreciated against the Indonesian rupiah to 225.2/225.6 from 224.8/225.1.
It slipped against the Thai baht to 12.2101/2302 from 12.1886/2064 and was unchanged against the Philippine peso at 6.61/6.62.
-- BERNAMA
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