THE Malaysian ringgit opened marginally stronger against the US dollar and most major currencies on Tuesday, as global investors weighed reports of improving negotiations between the United States and Iran that could reduce geopolitical tensions surrounding the strategically vital Strait of Hormuz.
At 8am, the local currency strengthened to 3.9500/9560 against the greenback compared with Monday’s closing rate of 3.9510/9550.
Market sentiment improved after US President Donald Trump reportedly said negotiations with Iran were “proceeding nicely”, while Pakistan’s military leadership informed China that an agreement was believed to be close.
Bank Muamalat Malaysia Chief economist Dr Mohd Afzanizam Abdul Rashid said traders remained cautiously optimistic despite the absence of any concrete breakthrough.
“In the meantime, the impact on the cost of living and the need for global central banks to maintain their restrictive monetary policy stance is taking a toll on the bond market by way of rising yields.
“In a nutshell, the outlook is still blurry, and traders are likely to remain wary of the impact on the real economy,” he told Bernama.
Afzanizam said the ringgit was expected to trade within a narrow range of RM3.94 to RM3.95 throughout the day as investors awaited clearer developments from the ongoing diplomatic talks.
The local currency also posted gains against a basket of major currencies during early trading.
It strengthened against the Japanese yen to 2.4847/4887 from 2.4860/4887 at Monday’s close, appreciated against the euro to 4.5958/6028 from 4.5998/6044, and edged higher against the British pound to 5.3301/3382 from 5.3311/3365 previously.
Against regional currencies, the ringgit traded mostly firmer, although it remained unchanged against the Indonesian rupiah at 222.6/223.0.
The Malaysian currency also improved against the Singapore dollar to 3.0917/0967 from 3.0932/0966, rose slightly against the Philippine peso to 6.42/6.44 from 6.43/6.44, and strengthened versus the Thai baht to 12.1445/1704 from 12.1640/1816 at Monday’s close. - May 26, 2026
