A customer counts her ringgit notes outside a money changer at the central business district in Singapore in this August 25, 2015 file photo. Malaysia's ringgit jumped more than 5 percent to a five-week high on October 7, 2015 on stop-loss dollar selling and higher local stocks. The ringgit, the worst performing Asian currency so far this year, surged as much as 5.2 percent to 4.1600 per dollar, its strongest since Sept 1. REUTERS/Edgar Su/Files

Malaysia: Ringgit opens stronger on support from commodities prices

  • Feb 25, 2022

KUALA LUMPUR: The ringgit recovered against the US dollar at the opening today, as higher commodity prices may have averted further declines, although heightened global geopolitical tensions continued to weigh on investor sentiment and support the US dollar.

At 9 am, the local currency rose to 4.1975/2005 versus the greenback from Thursday’s close of 4.2030/2080.

Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said market participants had sought shelter from event risks following Russia’s military operation in Ukraine, which boosted the US dollar index by 0.88 per cent to 97.04.

“As net exporters of crude oil, liquefied natural gas and crude palm oil, Malaysia’s economy would benefit from the current trend, which could help energise key sectors such as oil and gas, as well as plantation.

“To some extent, it could bolster government coffers, but that benefit could be offset by increased fuel subsidy costs,” he told Bernama.

He did emphasise, however, that the primary uncertainty that continues to cloud the market is the duration of the war and the severity of Western allies’ retaliatory measures.

“For the time being, expect the ringgit to remain weak near its current level,” he added.

Meanwhile, the ringgit was traded higher against a basket of other major currencies.

It rose against the Singapore dollar to 3.0992/1018 from 3.1062/1104 at the close yesterday and appreciated vis-a-vis the British pound to 5.6175/6215 from 5.6455/6522 on Thursday.

The local note had also increased against the euro to 4.7012/7046 from 4.7086/7142 previously and strengthened versus the yen to 3.6345/6374 from 3.6624/6671 yesterday. – Bernama