KUALA LUMPUR, March 16 — The ringgit closed higher against the US dollar today, supported by higher crude oil prices amid the ongoing geopolitical tensions between Russia and Ukraine, signalling the uncertainty in the foreign exchange market.

At 6 pm, the local currency stood at 4.1965/1995 versus the greenback from 4.2050/2085 at yesterday’s close.

A dealer said that the local developments have also helped to lift the local note against the greenback and several emerging currencies.

The government today announced that the EPF contributors will be allowed to make a special withdrawal of RM10,000 to help ease the burden of the people who are still impacted by the Covid-19 pandemic.

Nevertheless, another dealer said the forecast that the US Federal Reserve (Fed) plans to raise its rate to 0.5 per cent has the potential to drive up the US dollar against the ringgit in the short to medium term.

"However, the market would have already fully priced in the interest rate hike when the announcement is made,” the dealer said.

The Fed is expected to hike its lending rate, the first time since 2018, as it struggles with soaring US inflation, the impact of the war in Ukraine, and the continuing coronavirus crisis.

Meanwhile, the ringgit was traded stronger against a basket of major currencies, except versus the Singapore dollar, where it eased to 3.0823/0847 from 3.0774/0802 at yesterday’s close.

The local unit appreciated against the Japanese yen to 3.5461/5487 from 3.5642/5674 yesterday, climbed against the British pound to 5.4790/4829 from 5.4833/4879, and strengthened against the euro to 4.6111/6144 from 4.6263/6302 previously. — Bernama