THE ringgit opened slightly higher against the US dollar on Wednesday but is expected to remain under pressure as escalating geopolitical tensions drive investors towards the greenback as a safe-haven asset.
At 8am, the local currency traded at 3.9390/3.9535 against the US dollar, compared with Tuesday’s close of 3.9440/3.9495.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the US Dollar Index continued to strengthen as global attention centred on the implications of the closure of the Strait of Hormuz.
“China, which has been relying on imports from the Middle East, urged all sides to protect ships transiting the area while US President Donald Trump gave assurance that tanker escort would be provided to allow the flows of oil and gas,” he noted.
“The ringgit closed lower against the greenback by 0.53% to RM3.946 yesterday. In light of the risk aversion, we foresee the ringgit to continue to remain weak as traders seek refuge in the US dollar,” Afzanizam told Bernama.
The cautious tone in currency markets reflects broader concerns that disruption along one of the world’s most critical energy shipping routes could intensify volatility across global financial markets.
At the opening, the ringgit traded mixed against a basket of major currencies. It strengthened against the Japanese yen to 2.4964/2.5059 from 2.5010/2.5048 and edged marginally higher versus the euro at 4.5736/4.5904 from 4.5778/4.5842.
However, the local unit slipped against the British pound to 5.2590/5.2783 from 5.2451/5.2524.
Against regional peers, the ringgit was mostly weaker. It was little changed versus the Indonesian rupiah at 233.4/234.4 from 233.7/234.2, eased against the Philippine peso to 6.75/6.76 from 6.74/6.76 and declined against the Thai baht to 12.4652/12.5222 from 12.4401/12.4637.
The ringgit was firmer against the Singapore dollar at 3.0841/3.0959 compared with 3.0863/3.0909 at the previous close, offering a modest bright spot amid an otherwise defensive trading environment. - March 4, 2026
