Business

Ringgit steadies on hopes of renewed US-Iran talks easing oil route tensions

Currency trades in narrow range as softer crude prices and geopolitical optimism support sentiment

Updated 6 months ago · Published on 16 Apr 2026 9:03AM

Ringgit steadies on hopes of renewed US-Iran talks easing oil route tensions
Economist expects ringgit versus the US dollar to remain in a narrow range of between RM3.95 and RM3.97on Thursday - April 16, 2026

THE ringgit opened marginally stronger against the US dollar on Thursday, supported by growing optimism that renewed negotiations between Washington and Tehran could help ease tensions along critical global oil shipping routes.

At 8am, the local currency edged up to 3.9510/3.9570 against the greenback, compared with 3.9550/3.9600 at Wednesday’s close.

Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said market sentiment was buoyed by expectations that a second round of US-Iran talks could yield progress, potentially reopening the Strait of Hormuz and contributing to broader de-escalation in the region.

He cautioned, however, that inflationary pressures linked to the conflict, alongside rising US Treasury yields, could keep borrowing costs elevated, as the US Federal Reserve may be hesitant to cut interest rates.

“Expect ringgit versus the US dollar to remain in a narrow range of between RM3.95 and RM3.97 today,” he told Bernama.

Oil prices also provided some relief to markets, with both benchmark crude contracts slipping below the US$100 per barrel mark. West Texas Intermediate fell 0.58 per cent to US$90.76, while Brent crude eased 0.36 per cent to US$94.59.

In early trading, the ringgit was mixed against major currencies. It weakened against the British pound to 5.3627/5.3708 from 5.3614/5.3682, and slipped against the euro to 4.6649/4.6720 from 4.6594/4.6653. However, it strengthened slightly against the Japanese yen to 2.4879/2.4918 from 2.4890/2.4923.

Against regional peers, the ringgit was mostly firmer. It edged up against the Singapore dollar to 3.1093/3.1143 from 3.1095/3.1139, improved versus the Indonesian rupiah to 230.4/230.9 from 230.7/231.0, and rose against the Philippine peso to 6.57/6.59 from 6.58/6.59.

The currency, however, weakened against the Thai baht to 12.3415/12.3676 from 12.3098/12.3330 previously. - April 16, 2026

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