THE ringgit strengthened against the US dollar on Wednesday, extending its gains over the past year as investors weighed prospects of easing US-Iran tensions against lingering geopolitical and economic uncertainties.
The US dollar traded at RM4.0725, down 0.13 per cent from the previous session, while the ringgit has appreciated 0.33 per cent over the past month and 2.84 per cent over the past 12 months.
The softer US dollar came as investors assessed developments in ongoing peace negotiations between Washington and Tehran, with Qatar's Foreign Ministry spokesperson confirming that both countries were evaluating fresh proposals from mediators.
However, Iran's national security chief indicated that Washington's response remained unsatisfactory, suggesting that a diplomatic breakthrough was far from certain.
The US also conducted defensive strikes against Iranian surface-to-air missile systems earlier this week, although the limited scope of the operations suggested no immediate return to large-scale military action.
Meanwhile, the US dollar index fell 0.27 per cent to 101.613, reflecting reduced demand for the greenback amid improving diplomatic sentiment.
Investors were also cautious ahead of the US midterm elections and the employment report due later this week, which could influence expectations for Federal Reserve monetary policy.
In the oil market, Brent crude held above US$104 a barrel, while WTI remained above US$96, following sharp fluctuations in the previous session.
Both benchmarks remained lower for the week, with WTI shedding more than seven per cent and Brent more than eight per cent, amid hopes of progress in US-Iran negotiations and signs of recovering Middle Eastern crude exports.
Despite the recent retreat, oil prices remain elevated, keeping developments in the Middle East relevant to global energy markets and Malaysia's fuel-cost outlook. - November 4, 2026
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