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THE ringgit opened marginally firmer against the US dollar on Tuesday, staging a slight recovery after recent weakness although analysts caution that broader global factors continue to limit its upside.
At 8.00am, the local currency strengthened to 4.0265/0400 against the greenback, compared with Monday’s closing level of 4.0280/0350.
Market observers said the ringgit’s performance remains closely tied to external developments, particularly heightened geopolitical risks that have driven demand for the US dollar as a safe-haven asset.
Mohd Sedek Jantan, director of investment strategy and country economist at IPPFA Sdn Bhd, said the US Dollar Index continues to hold above the 100-point level amid renewed flight-to-safety flows.
"At the same time, the softer trend in the Bloomberg Asia Dollar Index suggests regional currency conditions remain relatively stable, indicating that the pressure on the ringgit is largely driven by global dollar strength rather than underlying domestic or regional fragility," he said.
Separately, Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said mixed signals from the United States have dampened expectations of a near-term de-escalation in the West Asia conflict.
He noted that the ongoing war has already disrupted key energy routes and infrastructure, with lasting implications for global markets.
"This will take years to repair. It appears that high oil prices are here to stay in the immediate term," he said.
Despite pressure against the dollar, the ringgit showed broader strength against other major currencies at the open.
It appreciated against the British pound, Japanese yen and euro, reflecting relatively stable regional currency conditions.
The local unit also traded mostly higher against its ASEAN peers, gaining against the Singapore dollar, Thai baht and Indonesian rupiah, while remaining unchanged against the Philippine peso.
Analysts said the near-term outlook for the ringgit will continue to hinge on developments in global risk sentiment, particularly the trajectory of the West Asia conflict and its impact on energy prices and capital flows. - March 31, 2026