THE ringgit opened firmer against the US dollar on Friday, supported by cautious trading conditions as investors weighed escalating geopolitical tensions and fresh signals from the United States economy.
At 8am, the local currency strengthened to 3.8965/3.9160 against the greenback, compared with 3.9045/3.9125 at Thursday’s close.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said global financial markets were exhibiting clear risk-off sentiment, with traders closely monitoring developments surrounding negotiations over the US-Iran nuclear deal.
“US President Donald Trump has set a 10-day deadline to conclude negotiations. At the same time, there are reports of US military forces building up in the Middle East,” he said.
He added that the US dollar-ringgit pair was likely to trade within a range of RM3.91 to RM3.93 as markets remained wary of further escalation in geopolitical tensions.
Beyond geopolitical concerns, Afzanizam pointed to recent US economic data indicating moderating domestic demand. Imports declined for a fifth consecutive month, falling 2.6 per cent year-on-year in December 2025, while the trade deficit narrowed to US$70.3 billion from US$96.9 billion in December 2024.
He said the figures suggested softer domestic demand had dampened import growth in the US economy.
“On the other hand, initial jobless claims fell slightly to 219,000 last week from 220,000 previously.
“However, claims have been trending higher since early January, indicating the labour market may be softening, with continuing claims remaining at an elevated level,” he said.
At the opening, the ringgit also traded higher against a basket of major and regional currencies.
It appreciated against the Japanese yen to 2.5126/2.5250 from 2.5221/2.5275 at the previous close, strengthened versus the euro to 4.5880/4.6103 from 4.6073/4.6168, and gained against the British pound to 5.2469/5.2725 from 5.2730/5.2838.
Against regional peers, the ringgit advanced against the Singapore dollar to 3.0732/3.0887 from 3.0817/3.0882, rose versus the Thai baht to 12.4944/12.5657 from 12.5196/12.5521, edged up against the Indonesian rupiah to 230.8/232.0 from 231.1/231.6, and strengthened against the Philippine peso to 6.72/6.76 from 6.73/6.75 previously. - February 20, 2026
