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THE ringgit traded mostly higher against major global currencies at Wednesday’s opening, although the local currency weakened marginally against the United States dollar as investors continued to monitor uncertainty surrounding negotiations between Washington and Tehran.
At 8am, the ringgit slipped slightly to 3.9670/9770 against the US dollar compared with Tuesday’s closing level of 3.9660/9705.
Bank Muamalat Malaysia Bhd Chief Economist Mohd Afzanizam Abdul Rashid said geopolitical developments linked to the Iran conflict continued to dominate global market sentiment despite strong performances in major international equity markets, particularly in the United States.
“There are conflicting signals. The Iranian state news agency seems to suggest that the negotiation is proceeding well. But US President Donald Trump remains hostile, especially with his remarks about the Strait of Hormuz that there should not be any country controlling it,” he said.
Financial markets have remained highly sensitive to developments involving the strategically vital Strait of Hormuz, a major global oil shipping corridor whose stability is closely tied to international energy prices and inflation expectations.
Afzanizam noted that investors were also increasingly concerned about the possibility of renewed inflationary pressures, which could influence future monetary policy decisions by the Federal Reserve.
“At the same time, there are fears about rising inflation, which could force the US Federal Reserve to raise interest rates. Positive earnings and AI optimism on related investment continue to support sentiment,” he told Bernama.
Oil markets remained volatile amid the geopolitical uncertainty.
United States benchmark West Texas Intermediate crude rose 1.40 per cent to US$89.92 per barrel, while Brent crude fell 5.31 per cent to US$94.29 per barrel.
Meanwhile, the US Dollar Index, which measures the greenback against a basket of major currencies, edged slightly higher by 0.04 per cent to 99.21 points.
Afzanizam said the ringgit was expected to trade within the RM3.95 to RM3.97 range against the US dollar throughout the day.
Against other major currencies, the Malaysian currency posted broader gains.
The ringgit strengthened against the Japanese yen to 2.4859/4925 from 2.4917/4947 at Tuesday’s close.
It also appreciated against the euro to 4.6089/6205 from 4.6172/6225 previously, while rising against the British pound to 5.3217/3351 from 5.3470/3530.
Within the regional currency market, the ringgit improved against the Thai baht to 12.1445/1818 from 12.1485/1675.
However, it eased marginally against the Singapore dollar to 3.1041/1121 from 3.1038/1075.
The local currency remained largely unchanged against both the Philippine peso and Indonesian rupiah at 6.44/6.46 and 222.8/223.5 respectively.
Analysts said market direction would continue to depend heavily on geopolitical developments in the Middle East, oil price movements and signals from the Federal Reserve regarding future interest rate policy. - May 28, 2026
