THE ringgit opened firmer against the U.S. dollar on Tuesday, supported by cautious optimism over potential negotiations between the United States and Iran as a two-week ceasefire approaches its expiry.
Market participants are closely watching developments ahead of the truce deadline on Wednesday, with expectations that renewed talks could help stabilise global markets and energy prices.
At 8.26am, the local currency strengthened to 3.9450/9505 against the greenback, compared with 3.9515/9555 at Monday’s close. It also traded higher against a basket of major currencies, including the pound sterling, euro and Japanese yen.
Against regional peers, the ringgit was mixed but generally firmer, gaining ground against the Singapore dollar, Thai baht, Indonesian rupiah and Philippine peso.
Bank Muamalat Malaysia Berhad Chief Economist Dr Mohd Afzanizam Abdul Rashid said sentiment was buoyed by indications that Tehran may be open to participating in negotiations.
“Judging from the WTI and Brent crude prices, which currently hover around US$88.19 per barrel and US$95.48 per barrel, respectively, traders and investors are hopeful that some agreement can be achieved and the ceasefire extended to allow more negotiations to take place,” he said.
He added that the ringgit is likely to remain within a tight trading band as investors await clearer signals from the Middle East.
“As such, ringgit is likely to maintain its narrow range trade as traders and investors would learn more about the negotiation in the Middle East. Perhaps, the USD-MYR exchange would linger around RM3.95 to RM3.96 today,” he added.
Despite external uncertainties, recent data تشير إلى that Malaysia’s economy remained resilient in the first quarter of 2026. Gross domestic product expanded by 5.3 per cent, while nominal exports grew by 12.7 per cent, up from 11.0 per cent in the previous quarter.
However, Mohd Afzanizam cautioned that rising fuel costs could weigh on activity in the second quarter.
“However, 2Q 2026 economic activities are likely to be marred by high fuel prices and some businesses would pass on their cost to the end consumers,” he said. - April 21, 2026
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