THE ringgit edged higher against the United States dollar at Friday’s opening amid improving market sentiment driven by reports of a possible temporary ceasefire between Washington and Tehran.
Currency traders reacted positively to news of a proposed 60-day truce between the United States and Iran, with expectations that easing geopolitical tensions in West Asia could stabilise global energy markets and support emerging market currencies, including the Malaysian ringgit.
At 8am, the local currency strengthened to 3.9755/9815 against the greenback, compared with Thursday’s closing level of 3.9770/9805.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the ringgit-dollar pair is expected to trade within the RM3.95 to RM3.97 range throughout the day.
“News on the 60-day US-Iran truce has led to a decline in Brent crude oil prices by 1.04 per cent to US$93.31 per barrel. The news (about the truce) is unconfirmed, but the market has reacted positively,” he said.
“This suggests that the investing community is fatigued with the nature of the unstable negotiations,” he told Bernama.
The prospect of reduced tensions in the Middle East contributed to weaker oil prices, easing fears of prolonged disruptions to global energy supplies through the Strait of Hormuz.
At the same time, fresh economic data from the United States added pressure on the US dollar.
The US personal consumption expenditures inflation rate — the Federal Reserve’s preferred inflation gauge — accelerated to 3.8 per cent in April from 3.5 per cent previously, indicating that elevated energy costs are increasingly affecting consumer purchasing power in the world’s largest economy.
Meanwhile, initial jobless claims in the United States rose to 215,000 last week from 210,000 previously, continuing an upward trend that has persisted since the end of April.
The combination of weaker labour market indicators and inflationary pressures pushed the US Dollar Index lower by 0.21 per cent to 98.997 points.
Despite strengthening against the US dollar, the ringgit traded mostly weaker against several major global and regional currencies.
The local currency declined against the British pound to 5.3447/3527 from 5.3272/3319 at Thursday’s close and weakened against the euro to 4.6323/6392 from 4.6181/6222 previously.
It also slipped slightly against the Japanese yen to 2.4961/5000 from 2.4947/4970.
Within the regional market, the ringgit fell against the Singapore dollar to 3.1151/1201 from 3.1085/1115 and weakened against the Thai baht to 12.2083/2338 from 12.1613/1773.
The local note was largely unchanged against the Indonesian rupiah at 222.7/223.2 compared with 222.8/223.1 previously and remained flat against the Philippine peso at 6.45/6.46. - May 29, 2026
