The ringgit continued its upward trajectory at the opening bell today, buoyed by encouraging domestic macroeconomic indicators and easing concerns surrounding global tariff developments.
At 8am, the local currency strengthened to 3.8790/9010 against the US dollar, compared with Monday’s close of 3.8885/8925. The level marks the ringgit’s strongest position since 13 April 2018, when it stood at 3.8785/8815, underscoring renewed investor confidence in Malaysia’s economic outlook.
Chief Economist at Bank Muamalat Malaysia Bhd, Dr Mohd Afzanizam Abdul Rashid, said the ringgit has appreciated by 0.31 per cent against the greenback since Monday, after the US currency slipped below the psychological RM3.90 threshold following last Friday’s US Supreme Court decision. The recent movement highlights how global legal and policy shifts can quickly reverberate across currency markets.
He noted that the ringgit’s immediate support level against the US dollar is seen at RM3.8722. According to him, foreign exchange markets appear to have priced in Malaysia’s positive macroeconomic data as well as the latest tariff-related developments.
“As such, we expect the ringgit to trade in a relatively narrow range in the near term,” he said, adding that volatility cannot be ruled out given persistent global uncertainties.
Dr Mohd Afzanizam pointed out that uncertainty surrounding US trade policy, along with geopolitical factors such as the scheduled US-Iran negotiations on Thursday, will continue to shape market sentiment. Heightened US military presence in West Asia and developments in the nuclear talks have kept Brent crude oil prices above US$70 per barrel in recent sessions.
He added that traders are closely monitoring geopolitical risks, particularly the 10 to 15-day deadline set by US President Donald Trump to finalise a nuclear agreement, which could unsettle financial markets if negotiations falter.
Stronger Against Major And Regional Currencies
At the opening, the ringgit also traded firmer against a basket of major currencies. It improved against the Japanese yen to 2.5076/5220 from 2.5120/5147 at Monday’s close, strengthened versus the euro to 4.5745/6004 from 4.5888/5935, and appreciated against the British pound to 5.2347/2644 from 5.2526/2580.
The local currency likewise advanced against its ASEAN peers. It rose against the Singapore dollar to 3.0633/0809 from 3.0727/0761, strengthened versus the Thai baht to 12.5177/5969 from 12.5342/5532, edged up against the Indonesian rupiah to 230.8/232.2 from 231.4/231.7, and inched higher against the Philippine peso to 6.73/6.78 from 6.75/6.76.
Market observers say sustained gains will hinge on external developments and the durability of Malaysia’s economic momentum, with investors remaining attentive to both global policy signals and commodity price trends.
