Malaysian ringgit climbs as Saudi oil shipments rise and diplomatic hopes grow
The ringgit edged higher against the US dollar and other major currencies after Saudi Arabia boosted oil exports through the Strait of Hormuz and signals of a US-Iran meeting emerged.
The Malaysian ringgit ticked up to 4.0750/4.0805 against the US dollar early this morning, improving on Monday's closing rate. Brent crude fell 3.4% to US$100.34 per barrel after satellite data showed Saudi Arabia redirecting oil flows through the Strait of Hormuz, raising daily exports to roughly 2.9 million barrels from about 700,000 in August due to the East-West pipeline outage. Afzanizam Rashid, chief economist at Bank Muamalat Malaysia Bhd, linked the softer oil price and the increased supply to the ringgit's modest appreciation.
He also highlighted President Donald Trump's expressed openness to meet Iran's president at the United Nations General Assembly, interpreting it as a sign of easing West Asian conflict. Consequently, the ringgit gained against the euro, pound and yen, while showing mixed movements against regional ASEAN currencies. The overall sentiment points to a gradual upward trend for Malaysia's currency amid improving oil market dynamics and diplomatic optimism.
Why it matters
Currency moves affect import costs, inflation and investor confidence in Malaysia and the region.
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