THE ringgit opened marginally stronger against the US dollar on Monday, defying cautious global market sentiment as escalating tensions in the Middle East continued to unsettle investors and raise fears over disruptions to global energy supplies.
At the opening bell, the Malaysian currency strengthened to 3.9495/9605 against the greenback from Friday’s close of 3.9515/9580, supported by modest gains across major and regional currencies.
However, analysts warned that financial markets remained highly sensitive to developments involving the prolonged confrontation between the United States and Iran, particularly amid concerns the conflict could destabilise strategic oil and shipping routes.
Bank Muamalat Malaysia Berhad Chief Economist Dr Mohd Afzanizam Abdul Rashid said investor sentiment remained restrained as the geopolitical deadlock showed little sign of easing.
“The stalemate between the US and Iran seems likely to be protracted and the recent attack on the United Arab Emirates' nuclear facility suggests that the war would likely be prolonged.
“By extension, the closure of the Strait of Hormuz would also be the case as both countries would use the waterway as their leverage,” he told Bernama.
The Strait of Hormuz remains one of the world’s most strategically important maritime chokepoints, handling a substantial share of global crude oil and liquefied natural gas shipments. Any prolonged disruption there could intensify volatility across global commodity and currency markets.
Despite prevailing uncertainty, the ringgit posted broader gains against a basket of major currencies during early trading.
The local currency strengthened against the British pound to 5.2572/2718 from 5.2749/2835 at Friday’s close, appreciated against the euro to 4.5873/6001 from 4.5948/6024, and improved against the Japanese yen to 2.4863/4934 from 2.4927/4968 previously.
The ringgit also advanced against several regional currencies, rising against the Thai baht to 12.0684/1083 from 12.0989/1247 and strengthening against the Singapore dollar to 3.0824/0915 from 3.0871/0927.
It also edged slightly higher against the Indonesian rupiah at 224.4/225.1 compared with 224.5/225.0 previously, while remaining largely unchanged against the Philippine peso at 6.40/6.42. - May 18, 2026
