The ringgit fell sharply against the US dollar in early trading on Thursday after the world's major currency gained support amid rising geopolitical tensions.
At 10.25am, the ringgit was at 4.2130, down 1.08% against the USD from its close of 4.1730 on Wednesday.
Bank Muamalat Malaysia Bhd's chief economist, Dr Afzanizam Rashid stated that the US Dollar Index (DXY) continued to rise by gaining 0.48% and reaching 101,677 points following increased demand for the safe-haven currency.
He also said that the market is closely monitoring the possibility of Israeli retaliation following the Iranian missile attack and how the conflict in the Middle East develops.
The ringgit is predicted to remain weak against the USD due to increasingly serious concerns between Iran and Israel.
Although weak against the US dollar, the ringgit appreciated against several major currencies.
It strengthened against the Japanese yen to hit 2.8482/2.8657 compared to Wednesday's close of 2.8931/2.8975. The local currency also rose against the euro, trading at 4.6100/4.6377 from 4.6208/4.6274 the previous day and improved against the British pound at 5.5357/5.5689, up from 5.5472/5.5551.
Meanwhile, the ringgit showed a mixed performance against Asean currencies.
It improved against the Singapore dollar, trading at 3.2298/3.2496 compared to yesterday's 3.2386/3.2436, and also rose against the Thai baht to 12.6854/12.7711 from 12.7350/12.7587.
However, it eased slightly against the Indonesian rupiah, reaching 273.3/275.1 from 273.2/273.8, and remained largely unchanged against the Philippine peso at 7.43/7.48 from 7.43/7.44 the previous day.
