Ringgit Retreats To 4.00 Versus US Dollar Amid West Asia Ceasefire Uncertainties

By Danni Haizal Danial Donald

KUALA LUMPUR, March 27 (Bernama) -- The ringgit retreated to the 4.00 level against the US dollar at noon, as risk-off mode dominated market sentiment due to growing scepticism over a ceasefire in Iran after United States (US) President Donald Trump indicated that he would not commit to a deal with Tehran.

“Following the announcement, the US Dollar Index (DXY) was seen climbing 0.28 per cent to 99.873 points, holding steady as safe-haven demand, while US benchmark equities indices fell more than one per cent,” said Bank Muamalat Malaysia Bhd’s chief economist Dr Mohd Afzanizam Abdul Rashid.

The local unit had opened at  3.9855 versus the greenback.

At 12.30 pm,  the ringgit stood at 4.0075/0105 versus the US dollar, marking its lowest position in two months, when it stood at 4.0045 on Jan 23.

 Xinhua also reported that financial markets continued to be heavily influenced by the hostilities involving the US, Israel, and Iran.

Both Tehran and Tel Aviv launched military strikes on Thursday amid growing international warnings about the conflict's severe economic costs.

However, equities managed to briefly pare some of their steep morning losses following reports that Iran had formally responded to a US truce proposal, the report said.

The ringgit also traded softer against a basket of other major currencies.

It slid versus the Japanese yen to 2.5114/5135 from 2.4951/5077 at Friday’s opening, fell against the British pound to 5.3460/3500 from 5.3143/3403 earlier and dropped vis-à-vis the euro to 4.6243/6277from 4.5969/6194 previously.

Against ASEAN currencies, it eased versus the Singapore dollar to 3.1177/1203 from 3.0994/1148 at the opening, slipped versus the Thai baht to 12.1942/2085 from 12.0868/1566 this morning, edged down vis-a-vis the Indonesian rupiah to 236.5/236.7 from 235.7/237.0 ealier, and inched down against the Philippine peso to 6.64/6.65 from 6.61/6.65 previously.

-- BERNAMA