THE ringgit opened broadly unchanged against the US dollar on Wednesday, as investors adopted a cautious stance following the extension of the ceasefire between Washington and Tehran, prolonging uncertainty in global markets.
At 8am, the local currency stood at 3.9495/9570 against the greenback, little changed from Tuesday’s close of 3.9490/9530, as traders assessed the implications of continued negotiations between the United States and Iran.
According to Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid, the last-minute decision by US President Donald Trump to extend the ceasefire, despite the absence of confirmation from Iranian officials, has added to market unease.
“It appears the market would need to familiarise itself with the inconsistent messaging. While it does create a high degree of uncertainties, it also suggests some indecisiveness, leading to hopes that a compromise could be achieved at some point,” he said.
Oil prices continued their upward trajectory, with West Texas Intermediate and Brent crude rising by 2.57 per cent and 3.74 per cent to US$89.67 and US$99.05 per barrel respectively, reflecting doubts over the durability of the truce.
Afzanizam noted that stronger-than-expected US retail sales data for March, which rose 0.7 per cent month-on-month against forecasts of 0.2 per cent, were partly driven by higher fuel costs.
“However, excluding gas and autos, retail sales sustained at 0.6 per cent, suggesting that higher gasoline prices in March was the main reason for higher retail sales. This could mean Americans’ purchasing power is reducing as they need to allocate more budget for fuel at the expense of other products,” he told Bernama.
In Washington, Kevin Warsh reiterated his support for central bank independence during a Senate Banking Committee hearing, while signalling the need for a new framework to address rising living costs, though without detailing specific measures.
The US Dollar Index rose 0.32 per cent to 98.414 points, reinforcing a firm tone for the greenback.
“On that note, the ringgit will remain in a narrow range of between RM3.94 to RM3.96 today as traders and investors will be observing the eventual outcome in the war in Iran,” Afzanizam added.
In early trading, the ringgit showed mixed performance against major currencies. It weakened slightly against the British pound but strengthened against the euro and Japanese yen.
Against regional peers, the currency also traded unevenly, gaining against the Singapore dollar and Thai baht, holding steady against the Indonesian rupiah, and remaining firm versus the Philippine peso, as investors continued to monitor geopolitical developments and their potential impact on global financial markets. - April 22, 2026
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