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THE ringgit opened firmer against the US dollar in early trade, supported by cautious market positioning, although it showed mixed performance against other major and regional currencies as investors weighed oil price swings and geopolitical uncertainty in the Strait of Hormuz.
Analysts said the local currency is likely to remain range-bound in the near term, with traders holding back from aggressive positions pending clearer developments in the Middle East and signals from the United States Federal Reserve.
At 8.03am, the ringgit strengthened to 3.9475/9540 against the US dollar from 3.9505/9550 at Tuesday’s close.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the currency is expected to trade within a narrow band as uncertainty persists.
“The ringgit is expected to trade within a narrow range as market participants await further clarity on the situation in the Strait of Hormuz,” he said.
Oil markets remained volatile following the United Arab Emirates’ decision to exit the OPEC alliance, a move expected to have longer-term implications for global supply dynamics.
At the time of writing, West Texas Intermediate crude fell 0.83 per cent to US$99.10 per barrel, while Brent crude declined 0.59 per cent to US$110.60 per barrel.
“News of the UAE’s departure from OPEC in May, after more than six decades of membership, is set to reshape the oil and gas landscape.
“The country will be free to determine its output levels in line with its investment in the sector,” Afzanizam told Bernama.
He added, however, that immediate market attention remains on supply disruptions linked to the ongoing conflict in Iran, which has affected the flow of oil and gas through the Strait of Hormuz.
On the macroeconomic front, recent United States data showed improving consumer sentiment, with the Conference Board’s Consumer Confidence Index rising to 92.8 in April following a ceasefire in the Iran conflict.
Despite this, concerns over a potential recession in the coming year have intensified, alongside weaker intentions among consumers to make major purchases.
“Tonight, the Federal Open Market Committee’s decision will be closely watched for signals on whether policymakers are becoming more wary of growth prospects amid a higher inflation environment,” he said.
Against a basket of major currencies, the ringgit traded mixed. It strengthened against the Japanese yen to 2.4740/4782 from 2.4756/4785 previously, but weakened against the British pound to 5.3394/3482 from 5.3292/3353 and slipped against the euro to 4.6261/6337 from 4.6189/6242.
The local currency performed slightly better against most ASEAN peers. It edged higher against the Singapore dollar to 3.0937/0990 from 3.0943/0983 and strengthened against the Thai baht to 12.1484/1759 from 12.1494/1685.
It was little changed against the Indonesian rupiah at 228.9/229.4 and remained steady against the Philippine peso at 6.44/6.45 compared with 6.44/6.46 previously. - April 29, 2026
