THE ringgit opened slightly weaker against the US dollar on Friday as escalating tensions in West Asia prompted investors to adopt a more cautious stance, dampening appetite for riskier assets.
At 8am, the local currency eased to 3.9275/9400 against the greenback from Thursday’s close of 3.9240/9280.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said global market sentiment had turned increasingly defensive as investors reacted to the intensifying geopolitical situation.
“In short, risk-off sentiment has become prevalent and staying in cash is probably the best idea for fund managers,” he said.
The conflict between the United States and Iran has continued to dominate global headlines, pushing Brent crude prices sharply higher.
Oil prices surged 9.86 per cent to US$101.05 per barrel amid concerns that the war could disrupt supplies from the region.
Adding to market unease, United States President Donald Trump has vowed to dismantle the Iranian regime, indicating that the rising cost of oil was of secondary importance.
Iran’s newly appointed Supreme Leader Mojtaba Khamenei has also reportedly sought the closure of the Strait of Hormuz as part of the country’s wartime strategy, raising fears of further disruption to global energy trade.
Afzanizam said financial markets were also watching developments in private credit markets, where higher investor redemptions had triggered concerns, while US Treasury yields climbed amid mounting worries over fiscal deficits driven by the growing cost of the war.
“In addition, there is concern over private credit markets following higher redemptions among investors, while US Treasury yields moved higher as concerns over fiscal deficits mount following the ballooning cost of war.
“In short, risk-off sentiment has become prevalent and staying in cash is probably the best idea for fund managers,” he said.
He added that investors would also be closely monitoring the upcoming meeting of members of the United States Federal Open Market Committee, who are scheduled to reconvene next week to determine the federal funds rate set by the Federal Reserve System.
“Markets will be observing their language for direction,” he said.
Despite weakening against the US dollar, the ringgit traded firmer against several other major currencies.
The local currency strengthened against the Japanese yen to 2.4666/4746 from 2.4720/4746 at Thursday’s close, gained against the British pound to 5.2436/2603 from 5.2554/2608 and rose against the euro to 4.5249/5393 from 4.5361/5408.
Against regional currencies, the ringgit was largely stronger, edging up against the Thai baht to 12.2090/2554 from 12.3257/3452, rising against the Philippine peso to 6.61/6.64 from 6.60/6.62 and strengthening against the Singapore dollar to 3.0715/0817 from 3.0786/0820.
It was, however, little changed against the Indonesian rupiah at 232.5/233.3 compared with 232.2/232.6 previously. - March 13, 2026
