THE ringgit opened weaker against the US dollar on Monday as escalating geopolitical tensions in the Middle East and a sharp rise in global oil prices strengthened demand for the greenback.
At 8am, the Malaysian currency traded at 3.9550/9800 against the US dollar, compared with Friday’s closing level of 3.9425/9535.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said investor caution had increased after Brent crude oil prices surged significantly.
Brent crude rose 15.5 per cent to US$107.04 per barrel and has climbed 37.7 per cent over the past week from US$77.74, following Iran’s announcement of Mojtaba Khamenei as the country’s new supreme leader.
"Following the risk-off sentiment, the US Dollar Index (DXY) rose 0.52 per cent to 99.496 points.
"As such, emerging market currencies, including the ringgit, are likely to remain weak in the near term amid fragile market sentiment," he said.
Afzanizam said concerns about a wider regional conflict had intensified after Bahrain’s water desalination facility suffered material damage in an Iranian drone attack.
At the same time, the United States and Israel are expected to escalate military operations against Iran, adding to uncertainty in global financial markets.
"In that sense, economic data may have taken a back seat as unfolding events in the Middle East are expected to have a material impact on global inflation and growth.
"Based on technical charts, the prevailing resistance and support levels for the US dollar-ringgit pair are at RM4.0285 and RM3.8800, respectively," he said.
Despite weakening against the US dollar, the ringgit traded mostly stronger against several other major currencies at the opening.
The local currency strengthened against the euro to 4.5577/5866 from 4.5634/5762 at Friday’s close and edged slightly higher against the Japanese yen to 2.4967/5126 from 2.4973/5044.
However, it slipped against the British pound to 5.2621/2954 from 5.2530/2676 previously.
The ringgit traded mixed against regional currencies.
It appreciated against the Thai baht to 12.3312/4169 from 12.3392/3810, but weakened against the Singapore dollar to 3.0788/0987 from 3.0779/0867.
The Malaysian currency also eased against the Indonesian rupiah to 233.6/235.2 from 232.9/233.6 and slipped against the Philippine peso to 6.70/6.75 from 6.68/6.70. - March 9, 2026
ringgit, US dollar, oil prices, global markets, Middle East conflict, currencies, economy
