by HIDAYATH HISHAM / pic TMR FILE

THE Malaysian ringgit started the week with a slight uptick against the US dollar, driven by anticipated gains in oil prices amid escalating geopolitical tensions in the Middle East. 

By 9.05am, the ringgit strengthened to 4.7100/7190 against the greenback, a modest improvement from last Friday’s closing at 4.7160/7210. 

Bernama reported that SPI Asset Management MD Stephen Innes suggested that the ringgit could see notable upward momentum, surpassing other currencies, if there is a substantial impact on oil prices due to geopolitical developments.

“The potential rise in oil prices could provide support for the ringgit when considered in the context of cross-currency comparisons,” he noted.

He highlighted the potential positive impact on the ringgit, emphasising Malaysia’s status as an oil-exporting nation. 

An increase in oil prices tends to elevate the country’s revenue from exports, consequently benefiting its currency.

Innes emphasised that the trajectory of the ringgit is closely tied to the broader sentiment within the Group of Ten (G-10) and the resilience of the US economy, particularly keeping a watchful eye on the US GDP.

“It is worth noting that the US core inflation is anticipated to decrease, as indicated by the US personal consumption expenditures (PCE) deflator, which could lead to a weakening of the US dollar later in the week.

“Therefore, I anticipate the ringgit’s rate to hover around 4.70 to 4.73 this week. Meanwhile, the ringgit was traded mostly lower against a basket of major currencies,” he added. 

The Malaysian ringgit faced depreciation against the euro at 5.1344/1442, a slight decline from 5.1324/1379, and exhibited a decrease against the British pound at 5.9864/9978 compared to 5.9822/9886 at the previous week’s close.

However, it strengthened against the Japanese yen, recording 3.1824/1887, an improvement from 3.1871/1907. Simultaneously, the local currency demonstrated mostly higher values against various Asean currencies.

The ringgit appreciated against the Singapore dollar, reaching 3.5165/5237 from 3.5176/5216, gained ground against the Indonesian rupiah at 301.5/302.3, up from 301.9/302.4, and showed an increase against the Philippines’ peso, climbing to 8.42/8.44 from 8.43/8.44 at last week’s close.

Conversely, it experienced a slip against the Thai baht, marking 13.2788/3102, down from 13.2733/2941 in the previous period.