Ringgit gains as oil prices plunge on hopes of Iran conflict de-escalation

MALAYSIA'S ringgit strengthened against the US dollar on Friday as improving prospects of a diplomatic resolution to the Iran conflict lifted investor sentiment, while global crude oil prices extended their steep weekly declines.

The US dollar-ringgit exchange rate fell 0.43 per cent to 4.0460 on Nov 6, reflecting a stronger ringgit that has appreciated 1.01 per cent over the past month and 3.28 per cent over the past year.

The gains came as the US Dollar Index hovered around 101.5, with investors reassessing the implications of the Democratic Party's sweeping victory in the US midterm elections for President Donald Trump's handling of the conflict with Iran.

The election outcome has raised expectations of increased congressional pressure on the administration to reconsider its military involvement and pursue a diplomatic settlement.

Oil markets reflected the improving sentiment, with US crude trading at around US$91 a barrel on Friday and heading for a weekly loss of about 12 per cent, while Brent crude hovered near US$99 and was on course for a 13 per cent decline.

However, prospects of a breakthrough remain uncertain as Tehran reviews proposals from mediators concerning its nuclear programme.

Iran has maintained that the US naval blockade of its ports must be lifted, sanctions eased and frozen assets released before it fully reopens the Strait of Hormuz.

At least five vessel-related incidents have also been reported in the Persian Gulf since Sunday, highlighting persistent risks to maritime shipping despite Gulf crude exports recovering to near pre-war levels. Transportation costs remain elevated.

Meanwhile, investors are awaiting the US employment report for further indications of labour-market strength and the Federal Reserve's monetary policy direction.

Private businesses added 86,000 jobs in October, according to ADP data, while initial jobless claims fell to their lowest level in 57 years. Third-quarter productivity growth also exceeded expectations.

Markets were pricing in an approximately 75 per cent probability of a 25-basis-point Federal Reserve rate hike next month.

For Malaysia, the combination of a stronger ringgit and lower international oil prices could help moderate imported inflation and energy costs, although a sustained decline in crude prices may also affect petroleum-related government revenue. - November 6, 2026