The Malaysian ringgit strengthened against the US dollar and other major currencies as geopolitical tensions eased and the greenback retreated.
KUALA LUMPUR: The ringgit opened higher against the US dollar on Wednesday. The local currency strengthened to 3.9400/9500 against the greenback from Tuesday’s close of 3.9530/9585.
Analysts attributed the rise to improved risk sentiment. This followed potential ceasefire talks between the United States and Iran.
SPI Asset Management managing partner Stephen Innes said the ringgit should skew more positively if the ceasefire narrative extends. He noted it signals a shift from tactical de-escalation toward serious dialogue.
“For now, this remains a headline-driven market where positioning shifts are reactive rather than conviction-led,” Innes told Bernama. He added a sustained rally is unlikely until there is something more tangible than rhetoric.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said developments in West Asia continue to take centre stage. He said conflicting signals from Washington about ending the war remain mixed.
“The ongoing war has also led to fuel prices skyrocketing, which can fan inflationary pressures,” Mohd Afzanizam said. He noted this compromises consumer purchasing power.
He also pointed to weak survey indicators like the Purchasing Managers’ Index. Services PMI readings for Australia, Japan, India, France, Germany, the UK and the US were all down in March.
The US Dollar Index remained below 100 points at 99.43. Traders are anxious about the war’s duration and its impact on global growth and inflation.
The ringgit also rose against other major currencies. It appreciated against the Japanese yen, British pound, and euro.
It strengthened against ASEAN currencies including the Singapore dollar and Thai baht. The local note also climbed against the Philippine peso.
