THE ringgit opened slightly higher against the US dollar on Monday, supported by mild weakness in the greenback, although gains were limited by persistent geopolitical tensions in West Asia and elevated global oil prices.
At 8am, the local currency strengthened to 3.9300/9455 against the US dollar, compared with 3.9365/9410 at last Friday’s close.
According to Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid, market sentiment is expected to remain cautious amid continuing geopolitical uncertainty and high crude oil prices, with Brent crude still trading above US$100 per barrel.
“There are clearly no signs of a let-up in the war involving Iran, while concerns over potential disruptions in the Strait of Hormuz and possible damage to oil and gas facilities in the Gulf region could significantly affect trade flows for such commodities.
“In addition, the geopolitical posture continues to evolve, as the presence of US military bases in West Asia does not necessarily guarantee their safety,” he said.
Mohd Afzanizam also commented on reports suggesting that Iran could permit oil shipments through the Strait of Hormuz if cargoes are traded in the Chinese yuan, describing the development as a possible indicator of shifting geopolitical and financial dynamics.
“As such, US de-dollarisation is reaching a new level as it becomes increasingly intertwined with geopolitics.
“Already, we have observed the share of the US dollar in global foreign reserves decline from 71.1 per cent in the first quarter of 1999 to 56.9 per cent in the third quarter of 2025,” he added.
Looking ahead, investors are closely watching the upcoming meeting of the Federal Open Market Committee scheduled for March 17–18, where policymakers are expected to release their latest quarterly economic projections.
“In December 2025, US Federal Reserve staff projected the Personal Consumption Expenditures Price Index inflation rate to ease to 2.4 per cent in 2026, down from the previous projection of 2.6 per cent made in September 2025.
“On that note, the ringgit is expected to trade within a tight range against the greenback, possibly between RM3.92 and RM3.95 today,” he said.
At the opening, the ringgit also strengthened against a basket of major global currencies.
The local currency rose against the Japanese yen to 2.4630/4729 from 2.4683/4715 at Friday’s close, appreciated against the British pound to 5.2057/2262 from 5.2214/2273, and advanced against the euro to 4.4940/5117 from 4.5093/5144.
It also traded higher against most ASEAN currencies. The ringgit improved against the Singapore dollar to 3.0641/0767 from 3.0730/0767, gained against the Thai baht to 12.1136/1696 from 12.1862/2062, strengthened against the Indonesian rupiah to 231.7/232.7 from 232.1/232.5, and edged up against the Philippine peso to 6.58/6.61 from 6.59/6.60 previously. - March 16, 2026
