Ringgit Hits 4.0750 as Brent Crude Falls 3.4% to $100.34
The Malaysian currency strengthened against the dollar and euro as oil prices dropped on reduced supply concerns.
Key points
- Ringgit appreciated to 4.0750 per USD as Brent crude fell 3.4% to US$100.34.
- Saudi Arabia increased Hormuz exports to 2.9 million barrels daily, easing supply fears.
- The currency gained against the euro and pound but moved mixed against ASEAN peers.
The ringgit rose to 4.0750 per US dollar at 8 am, reversing its previous slide. This movement followed a 3.4% drop in Brent crude oil to US$100.34 per barrel. Market sentiment improved as geopolitical tensions in West Asia appeared to ease.
Afzanizam Rashid, chief economist at Bank Muamalat, cited satellite data showing Saudi export shifts. Saudi Arabia moved 2.9 million barrels daily via the Strait of Hormuz. This increase from August levels reduced pressure on global energy supply chains.
Oil supply shifts ease price pressure
The East-West pipeline shutdown forced producers to reroute shipments. Satellite data confirmed a surge in Hormuz exports to 2.9 million barrels. This shift helped stabilize prices after earlier spikes threatened regional inflation.
Analysts noted that US President Donald Trump plans to meet Iranian leaders. This diplomatic step at the UN General Assembly suggests de-escalation. Such developments directly support risk-on sentiment in Asian currency markets.
Ringgit gains against euro and pound
The local currency strengthened against the euro to 4.6716 from 4.6783. It also rose against the British pound to 5.4475. These gains reflect broader risk appetite returning to emerging market assets.
Performance against regional peers remained mixed, according to freemalaysiatoday.com. The ringgit gained slightly against the Singapore dollar but fell against the Thai baht. It stayed flat against the Indonesian rupiah and Philippine peso.
Regional peers show mixed currency trends
The Singapore dollar weakened to 3.1931 per ringgit from 3.1950. The Thai baht appreciated to 12.2593 per ringgit from 12.2450. These movements indicate divergent capital flows within ASEAN economies.
