Business

Ringgit rebounds on diplomacy hopes as oil prices retreat

National currency strengthens against US dollar amid improved risk sentiment tied to renewed expectations of US–Iran talks

Updated 6 months ago · Published on 14 Apr 2026 9:21AM

Ringgit rebounds on diplomacy hopes as oil prices retreat
Ringgit might stage a slight rebound but should remain in a narrow range of RM3.96 to RM3.98 today, Mohd Afzanizam predicts - April 14, 2026

THE ringgit opened stronger against the US dollar, rebounding sharply as easing oil prices and renewed hopes of diplomatic progress between Washington and Tehran lifted global market sentiment.

At the start of trading, the local currency rose by 135 basis points to 3.9600/9715 against the US dollar, compared with 3.9735/9805 at the previous close, marking a notable recovery after recent volatility driven by geopolitical tensions.

Analysts attributed the gains to a shift towards riskier assets, as markets reacted to indications of a possible second round of negotiations between the United States and Iran in the near term.

Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said developments in the oil market had played a key role in supporting the ringgit, with benchmark crude prices easing below 100 US dollars per barrel.

“The news sparked hope that an amicable solution could be achieved, although it can also be elusive,” he said.

He added that the US dollar, typically viewed as a safe-haven currency during periods of uncertainty, had weakened in tandem with falling Treasury yields and a softer dollar index.

“In that sense, there appears to be a risk-on mode, although that may be quite tentative given the evolving nature of the negotiations.

“Ringgit might stage a slight rebound but should remain in a narrow range of RM3.96 to RM3.98 today,” he added.

Despite strengthening against the US dollar, the ringgit traded mixed against other major currencies, slipping against the British pound and the euro while edging slightly higher against the Japanese yen.

The local currency also performed broadly firmer against regional peers, gaining against the Singapore dollar, Indonesian rupiah and Philippine peso, but weakening marginally against the Thai baht.

The movement reflects cautious optimism in financial markets, where investors remain sensitive to geopolitical developments, particularly the trajectory of US–Iran negotiations and their impact on global energy prices. - April 14, 2026

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