THE ringgit edged slightly higher against the US dollar in early trading on Tuesday as financial markets continued to monitor rapidly evolving geopolitical tensions in West Asia following renewed diplomatic engagement between the United States and Iran.
At 8am, the local currency strengthened to 3.9705/9760 against the greenback, compared with Monday’s closing level of 3.9720/9770.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said investor sentiment remained heavily influenced by uncertainty surrounding negotiations between Washington and Tehran, with markets still doubtful that a lasting resolution could be secured in the near term.
“The latest development showed that US President Donald Trump had called off plans to attack Iran as serious negotiations with Tehran are ongoing,” he said.
Despite signs of continuing diplomacy, Mohd Afzanizam noted that rising crude oil prices reflected persistent investor concern over the risk of further escalation in the Middle East conflict.
West Texas Intermediate crude rose 3.07 per cent to US$108.66 per barrel, while Brent crude climbed 2.60 per cent to US$112.10 per barrel amid fears that any renewed military confrontation could disrupt global energy supplies.
At the same time, the US Dollar Index (DXY), which measures the greenback against a basket of major currencies, declined 0.34 per cent to 98.947 points, providing some support for emerging market currencies including the ringgit.
Mohd Afzanizam said the local currency was expected to trade within a narrow range of between 3.96 and 3.97 against the US dollar throughout the day as traders adopted a cautious stance.
However, the ringgit weakened against most major global currencies at the opening.
The local note slipped against the British pound to 5.3336/3410 from 5.3078/3145 previously, weakened against the euro to 4.6276/6340 from 4.6214/6272, and eased marginally against the Japanese yen to 2.4992/5028 from 2.4991/5024.
Against regional currencies, the ringgit also traded mostly lower.
It depreciated against the Thai baht to 12.2053/2305 from 12.1646/1848 and softened against the Singapore dollar to 3.1056/1104 from 3.1036/1078 at Monday’s close.
The ringgit, however, posted a slight gain against the Indonesian rupiah at 224.7/225.1 compared with 224.8/225.1 previously, while remaining largely unchanged against the Philippine peso at 6.43/6.44. - May 19, 2026
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