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THE ringgit started the day higher against several major currencies but softened against the US dollar on Thursday, as cautious investor sentiment persisted amid geopolitical tensions
At 8am, the local currency traded at 3.9300/3.9400 against the greenback, retreating from Wednesday’s close of 3.9145/3.9205. Analysts attributed the weakening to heightened global uncertainties, including escalating geopolitical conflicts and implications for US interest rates.
Bank Muamalat Malaysia Bhd Chief Economist Mohd Afzanizam Abdul Rashid noted that the US Federal Reserve’s (Fed) outlook is contributing to market caution.
“The US Federal Reserve chairman Jerome Powell indicated that risks associated with the war in Iran remain uncertain, while new US import tariffs are expected to have an inflationary impact,” he said.
Fed staff have revised their 2026 inflation forecast upward from 2.4% to 2.7%, with the Fed Funds Rate projected at 3.4%, implying the possibility of one rate cut during the year, Afzanizam added.
The situation has been compounded by a surge in Brent crude oil prices, which have climbed to around US$111 per barrel amid intensifying conflict in Iran.
“In short, the degree of economic uncertainty has escalated, and risk-off sentiment will likely continue to dominate financial markets.
As such, the ringgit is likely to maintain its narrow trading range of around RM3.90 to RM3.93 today,” he said.
Despite the US dollar pressure, the ringgit showed strength against other major currencies. It rose against the Japanese yen to 2.4590/2.4654 from 2.4627/2.4668 at Wednesday’s close, climbed versus the British pound to 5.2128/5.2260 from 5.2290/5.2370, and appreciated against the euro to 4.5046/4.5160 from 4.5166/4.5235.
The local unit also recorded gains against select ASEAN currencies, strengthening against the Thai baht to 11.9729/12.0122 from 12.0878/12.1130 and improving versus the Singapore dollar to 3.0617/3.0700 from 3.0668/3.0718.
However, the ringgit traded lower against the Indonesian rupiah at 232.0/232.7 from 231.0/231.6 and weakened versus the Philippine peso to 6.60/6.62 from 6.57/6.59, reflecting uneven regional currency movements amid global risk-off sentiment.
Afzanizam concluded that market participants remain cautious, with the ringgit expected to navigate a tight range while reacting to further developments in geopolitics, energy markets, and US monetary policy. - March 19, 2026