KUALA LUMPUR, May 11 - The ringgit opened higher against the United States (US) dollar on Monday, as investors kept an eye on the ongoing peace negotiations over the West Asia crisis.
At 8am, the local unit rose to 3.9170/9230 against the greenback, compared with Friday’s close of 3.9185/9230.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said market sentiment continued to revolve around the war in Iran, as the ongoing peace negotiations appeared elusive amid inconsistent reports on their progress.
“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 told Bernama.
At the time of writing, the Brent crude oil price climbed by 3.55 per cent to US$104.93 per barrel.
Afzanizam added that the US non-farm payrolls report came in higher at 115,000 in April versus consensus estimates of 62,000, suggesting the US labour market remained resilient and that the US Federal Reserve might not be in a hurry to cut rates.
As such, the ringgit is expected to trade in a narrow range, as traders are also anticipating the release of Malaysia’s gross domestic product for the first quarter of 2026 this Friday (May 15).
“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 said.
At the opening, the ringgit traded higher against a basket of major currencies and most ASEAN currencies.
The local note appreciated versus the Japanese yen to 2.4970/5010 from 2.5010/5040 at last Friday’s close, increased against the British pound to 5.3248/3329 from 5.3354/3416 last week, and rose vis-à-vis the euro to 4.6095/6166 from 4.6121/6174 previously.
Against its regional peers, the ringgit edged up against the Singapore dollar to 3.0886/0936 from 3.0910/0948 at last Friday’s close, strengthened versus the Thai baht to 12.1322/1579 from 12.1640/1844 previously, and inched up vis-à-vis the Indonesian rupiah at 225.3/225.7 versus 225.4/225.7.
However, the local note was unchanged against the Philippine peso at 6.46/6.47 versus Friday’s close.