KUALA LUMPUR: The ringgit fell in opposition to the US greenback on the opening at present, owing to international geopolitical tensions, however an economist believes that the ongoing Russia-Ukraine disaster will present assist for the native foreign money sooner or later.
At 9 am, the native foreign money fell to 4.1880/1905 versus the buck from Wednesday’s shut of 4.1830/1860.
Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid mentioned it stays to be seen how the battle could possibly be resolved however the clear winner is commodity costs, which is able to head additional north.
“Commodity exporting nations ought to profit from increased income whereas exerting extra upward strain on inflation,” he advised Bernama.
Mohd Afzanizam mentioned key commodities resembling Brent crude and crude palm oil (CPO) would assist assist the Malaysian economic system with CPO presently buying and selling at greater than RM6,000 per metric tonne.
“This will increase rural areas revenue which later would translate into spending. As such, the ringgit must be properly supported on the prevailing degree of RM4.18 at present,” he added.
Meanwhile, the ringgit was traded largely decrease in opposition to a basket of different main currencies.
It rebounded in opposition to the Singapore greenback to three.1071/1091 from 3.1114/1141 on the shut yesterday, marginally decrease vis-a-vis the British pound at 5.6668/6702 from 5.6885/6925, and gained in opposition to the euro to 4.7241/7269 from 4.7481/7515.
However, the native foreign money eased versus the yen to three.6449/6471 from 3.6352/6381 beforehand. – Bernama
