Ringgit Gains on Dollar as Oil Prices Slip and Sentiment Improves

The local currency appreciated to 4.0955/1015 against the US dollar at the opening bell, moving from Thursday’s 4.0965/1010 level. Dr Mohd Afzanizam Abdul Rashid of Bank Muamalat Malaysia Bhd said sentiment improved after reports that Saudi Arabia started restoring its damaged East-West pipeline and that tanker movements through the Strait of Hormuz persisted, reducing immediate oil-supply concerns. Consequently, Brent crude fell 0.95% to US$104.82 a barrel and US Treasury yields on two- and ten-year notes each slipped seven basis points.

The ringgit also strengthened against the euro, yen, and pound, while showing mixed moves versus regional peers. Market participants are now focused on the Bank of Japan’s upcoming policy meeting, where a 25-basis-point rate hike to 1.25% is widely expected. Dr Afzanizam predicts the ringgit will stay within a narrow range as traders monitor the outcome.