THE ringgit opened higher against the US dollar on Tuesday, buoyed by improved global risk sentiment after US President Donald Trump signalled a possible de-escalation in the West Asia conflict.
At 8.01am, the local currency strengthened to 3.9200/9400 against the greenback, compared with Thursday’s close of 3.9330/9415. Malaysian markets were closed on March 20 and March 23 in conjunction with Hari Raya Aidilfitri.
Market participants said the currency’s movement reflected a broader shift in investor sentiment, with crude oil prices falling sharply following Trump’s remarks, easing pressure on oil-importing economies such as Malaysia.
Stephen Innes said the decline in oil prices suggested a reduction in geopolitical risk premiums rather than a decisive change in outlook.
“If markets truly believed in a durable de-escalation, we would have seen a much stronger and more sustained rally across risk assets and a deeper greenback selloff. Instead, the reaction has been sharp but incomplete, suggesting investors are trimming defensive US dollar positioning rather than fully rotating out of it,” he told Bernama.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid noted that the US Dollar Index declined by 0.7 per cent to 98.95 following the extension of the deadline for potential US military action against Iranian energy infrastructure.
“It was risk-on mode as a result, with benchmark equity indices such as the S&P 500 and Nasdaq rising more than one per cent amid an 11 per cent decline in the Brent crude oil prices to US$99.94 per barrel.
“As such, the local note is likely to react positively to such news, although the prevailing situation of the war in Iran engulfing the global economy is likely to keep market sentiments guarded,” he added.
Against other major currencies, the ringgit traded lower. It weakened against the Japanese yen, British pound and euro, reflecting broad-based dollar and cross-currency movements.
Against regional peers, the ringgit showed mixed performance. It strengthened against the Indonesian rupiah and Philippine peso, but slipped against the Singapore dollar and Thai baht.
Analysts said the currency’s outlook will likely remain closely tied to developments in global risk sentiment, energy prices and geopolitical tensions, with markets continuing to react to shifting signals from Washington and the broader Middle East situation. - March 24, 2026
