Kuala lumpur: The ringgit, along with other regional currencies, closed lower against the US dollar on Friday as investors, both globally and regionally, shifted back to safe-haven investments due to ongoing geopolitical uncertainties in West Asia. At 6 pm, the local currency slipped to 4.0105/0140 against the US dollar from Thursday's close of 3.9920/3.9955.
According to BERNAMA News Agency, the Singapore dollar was slightly softer with the USD/SGD hovering near 1.27-1.28 as investors opted for safe-haven assets, which is favourable for the greenback following conflicting signals regarding the ongoing conflict in West Asia. The US dollar index, which measures the greenback against six major currencies, went up by 0.15 per cent to 100.05. The same factors drove the Chinese yuan to fall to a three-week low of 6.9141 versus the US dollar, while the euro fell against the US dollar at US$1.15 to US$1.16 as investors rushed to safety.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid noted that US President Donald Trump's 10-day deadline extension related to Iran's reopening of the Strait of Hormuz did little to calm volatility in the crude oil market. Concerns among Federal Reserve members about inflation risks surpassing weak employment risks are creating a policy dilemma for the US central bank. Consequently, the ringgit is expected to remain weak, possibly hovering around the RM4.00 level due to the heightened economic fallout from the oil shock.
At the close, the ringgit was traded lower against a basket of major currencies. It fell versus the Japanese yen to 2.5084/5109 from 2.5025/5049 at Thursday's close, decreased against the British pound to 5.3368/3414 from 5.3301/3348 yesterday, and slipped vis-a-vis the euro to 4.6197/6237 from 4.6140/6180 previously. The local currency also traded lower or flat against ASEAN currencies, dropping versus the Singapore dollar to 3.1164/1194 from 3.1102/1132 on Thursday and declining against the Thai baht to 12.1903/2077 from 12.1529/1695 yesterday. However, it was flat vis-a-vis the Indonesian rupiah at 236.1/236.5 compared with 236.1/236.4 previously and was unchanged against the Philippine peso at 6.62/6.63.