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THE Malaysian ringgit opened slightly stronger against the US dollar on Monday as global markets remained sensitive to developments in Middle East peace negotiations and the broader impact of rising oil prices on inflation and growth.
At 8am, the local currency strengthened to 3.9170/9230 against the US dollar, compared with Friday’s close of 3.9185/9230.
Market analysts said sentiment was being driven largely by uncertainty surrounding the ongoing conflict involving Iran and the fragile nature of peace talks, which have yet to produce any clear breakthrough.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said investors remained cautious as conflicting signals continued to emerge from negotiations.
“Higher oil prices are eating into businesses' margins and consumers' budgets across the globe, leading to a possible slowdown in investment and consumption.
“As such, risk appetite among the traders is likely to remain guarded,” he said.
Benchmark Brent crude prices rose 3.55 per cent to US$104.93 per barrel at the time of reporting, underscoring concerns that sustained energy price increases could weigh on global economic activity.
Afzanizam added that stronger-than-expected US employment data also influenced currency expectations, with April’s non-farm payrolls rising to 115,000 compared with market forecasts of 62,000.
The data suggested resilience in the US labour market, reducing pressure on the US Federal Reserve to move quickly towards interest rate cuts.
Against this backdrop, he said the ringgit was likely to remain within a narrow trading range in the near term, as investors also positioned themselves ahead of Malaysia’s first-quarter GDP release scheduled for later this week.
“It seems the Malaysian economy will continue to maintain a healthy growth trajectory during the first three months of this year and perhaps in the first half of 2026.
“That notion could provide some support to the ringgit as the government remains proactive to provide the right response to the current shock,” he told Bernama.
At the opening, the ringgit strengthened against most major currencies.
It rose against the Japanese yen to 2.4970/5010 from 2.5010/5040 previously, gained against the British pound to 5.3248/3329 from 5.3354/3416, and edged higher against the euro to 4.6095/6166 from 4.6121/6174.
Against regional currencies, the ringgit also firmed.
It strengthened against the Singapore dollar to 3.0886/0936 from 3.0910/0948, appreciated against the Thai baht to 12.1322/1579 from 12.1640/1844, and edged up against the Indonesian rupiah to 225.3/225.7 from 225.4/225.7.
The local currency was unchanged against the Philippine peso at 6.46/6.47. - May 11, 2026