Business

Ringgit opens mixed as US dollar strengthens on geopolitical tensions

Local currency pressured by risk aversion as US-Iran standoff and oil price surge drive safe-haven demand for greenback

Updated 6 months ago · Published on 13 Apr 2026 9:02AM

Ringgit opens mixed as US dollar strengthens on geopolitical tensions
Mohd Afzanizam says the ringgit could see depreciation against the greenback and perhaps revisit the RM4.00 level - April 13, 2026

THE ringgit opened mostly higher against a basket of major currencies on Monday but slipped slightly against the US dollar as global investors moved towards safer assets amid escalating geopolitical tensions and firmer demand for the American currency.

At 8am, the local note eased to 3.9695/9960 against the US dollar, compared with 3.9625/9680 at Friday’s close.

Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said near-term sentiment for the ringgit is expected to remain cautious, citing heightened geopolitical risks and volatile market conditions.

“Risk aversion among traders is becoming more pronounced following stalled negotiations between the US and Iran. Historically, such developments tend to trigger safe-haven demand for the greenback,” he told Bernama.

He added that market sentiment has further deteriorated following reports that US President Donald Trump is considering a blockade of the Strait of Hormuz, a strategic waterway critical to global oil and gas shipments.

The development has pushed crude oil benchmarks, including West Texas Intermediate and Brent, above US$100 per barrel.

Afzanizam said the situation has strengthened the US dollar, with the US Dollar Index rising 0.47 per cent to 99.115 points.

“Therefore, it is going to be a risk-off mode today, and the ringgit could see depreciation against the greenback and perhaps revisit the RM4.00 level,” he said.

Reports that the US Central Command will begin implementing a blockade of maritime traffic entering and exiting Iranian ports from April 13 have added further pressure on currency markets. The measures are expected to apply to vessels of all nations operating in Iranian waters, including the Arabian Gulf and Gulf of Oman.

Despite weakness against the US dollar, the ringgit traded higher against several major currencies at the opening session.

It strengthened against the British pound to 5.3167/3522 from 5.3248/3322, improved against the Japanese yen to 2.4858/5025 from 2.4882/4918, and rose against the euro to 4.6344/6653 compared with 4.6401/6465 at Friday’s close.

Against regional currencies, the ringgit showed a mixed performance. It gained against the Singapore dollar to 3.1065/1275 from 3.1093/1139 and strengthened versus the Thai baht to 12.2587/3493 from 12.3289/3525.

However, it weakened against the Indonesian rupiah to 232.0/233.7 from 231.6/232.0, and slipped against the Philippine peso to 6.61/6.66 from 6.60/6.62 previously. - April 13, 2026

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