THE ringgit strengthened in early trade on Wednesday, rising to the 3.94 level against the US dollar as improving sentiment over potential diplomatic progress between Washington and Tehran lifted regional currencies.
At 8am, the local unit advanced to 3.9430/9510 against the greenback, compared with 3.9500/9545 at Tuesday’s close, supported by reports of possible second-round talks between the United States and Iran.
However, Bank Muamalat Malaysia Bhd Chief Economist Mohd Afzanizam Abdul Rashid cautioned that the broader global outlook remains uncertain following the latest projections by the International Monetary Fund.
"The main risk is obviously the war in Iran, which could elevate the inflationary pressures, while increased defence spending may provide a boost to GDP, albeit momentarily, but it could risk diverting resources away from social needs.
"Be that as it may, the US Dollar Index declined 0.25 per cent to 98.121 points. Amid heightened uncertainties, the ringgit is likely to trade within a narrow range today," he said.
The IMF has forecast global economic growth to moderate to 3.1 per cent in 2026 and 3.2 per cent in 2027, down from 3.4 per cent in 2025.
In early trading, the ringgit was mostly firmer against major currencies. It appreciated against the euro and Japanese yen but edged lower versus the British pound.
Against regional peers, the local currency also traded largely higher, gaining against the Singapore dollar, Indonesian rupiah and Philippine peso, while slipping slightly against the Thai baht. - April 15, 2026
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