Post by : Shakul

Malaysia’s currency, the ringgit, opened nearly unchanged against the US dollar on Monday but remained under pressure as global investors moved toward safer assets amid rising geopolitical tensions. The cautious market sentiment comes as uncertainty in the Middle East continues to influence financial markets worldwide.

In early trading, the ringgit hovered around the 3.95 level against the US dollar, reflecting a defensive stance by investors who are increasingly favoring the greenback as a safe-haven currency during periods of global instability.

Market analysts noted that escalating tensions around the Strait of Hormuz — a critical global oil shipping route — have contributed to volatility across currencies and commodities. Oil prices surged sharply, with Brent crude nearing $96 per barrel and US West Texas Intermediate approaching $90, driven by supply concerns and ongoing geopolitical risks.

The strengthening US Dollar Index (DXY), which tracks the greenback against major global currencies, also added pressure on emerging market currencies, including the ringgit. A stronger dollar typically reduces the appeal of riskier assets and shifts capital flows toward the United States.

Despite this pressure, the ringgit showed resilience against several major currencies. It gained against the euro, British pound, and Japanese yen, indicating selective strength supported by regional currency dynamics. However, performance against ASEAN currencies remained mixed, reflecting varying economic conditions across the region.

Economists suggest that the ringgit may continue to face downward pressure in the short term, especially with the approaching deadline of a temporary ceasefire in the Middle East. Any escalation could further strengthen the US dollar and intensify risk-off sentiment in global markets.

Overall, the currency market remains highly sensitive to geopolitical developments, energy price movements, and central bank signals, with investors closely watching for any signs of stability or escalation in the coming days.

#Global #Economy #Business #Markets #Forex