The new federal government program will let airlines borrow up to $150 million each, said Finance Minister François-Philippe Champagne.

KUALA LUMPUR, June 5 — The ringgit ended lower against the US dollar today amid cautious sentiment over lingering geopolitical uncertainty in West Asia and rising fuel prices.

At 6 pm, the local currency depreciated to 4.0280/0320 against the greenback from yesterday’s close of 4.0095/0140.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the stalemate in the US-Iran negotiations could keep fuel prices elevated and result in higher inflationary pressures.

He said authorities across Asia have also reaffirmed their commitment to stabilising their respective currencies amid heightened market volatility.

He added that the US dollar-Japanese yen pair had surpassed the 160-yen psychological level, prompting the Japanese government to signal its readiness to intervene in the foreign exchange market, while India is mulling scrapping the capital gains tax on bonds to lure foreign investors.

“Hence, the currency market is likely to remain guarded,” he told Bernama.

The ringgit also traded lower against a basket of major currencies. 

It eased against the British pound to 5.4233/4287 from 5.3872/3932, slid against the euro to 4.6882/6928 from 4.6610/6663, and slipped versus the Japanese yen to 2.5183/5209 from 2.5081/5111 at yesterday’s close.

The local currency traded lower against regional peers.

It retreated versus the Singapore dollar to 3.1390/1424 from 3.1241/1279, and eased against the Thai baht to 12.3433/3605 from 12.2708/2903.

It also weakened against the Philippine peso to 6.55/6.56 from 6.50/6.52, and dropped against the Indonesian rupiah at 223.3/223.6 versus 222.1/222.4 at Thursday’s close. — Bernama

 

NEW DELHI, June 3 — India approved a 100 billion ‌rupee (RM4.1 billion) fuel stabilisation fund today to help keep jet fuel prices in check for airlines hit by rising costs from the Iran war.

The government said the support would be provided as interest-free advances ‌to oil marketing companies ⁠to cover under-recoveries — the ⁠gap between ⁠market-linked jet fuel prices and ⁠the ⁠moderated rates charged to airlines.

“The measure will help protect ⁠and sustain domestic and international air connectivity, ensuring continuity of air services,” it added.

Shares of India’s largest airline, IndiGo, reversed course ⁠to trade up 1 per cent.

Globally, airlines have been squeezed by rising ⁠jet fuel prices, which can account for ⁠up ⁠to 40 per cent of operating costs. — Reuters