The Malaysian ringgit edged up against the US dollar on Monday, supported by mild dollar weakness, though gains were limited by geopolitical risks and high oil prices
KUALA LUMPUR: The ringgit opened marginally higher against the US dollar on Monday. The local note strengthened to 3.9300/9455 against the greenback from 3.9365/9410 at last Friday’s close.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said market sentiment is likely to remain cautious. He cited heightened geopolitical risks in West Asia and persistently high crude oil prices, with Brent crude above USD 100 per barrel.
“There are clearly no signs of a let-up in the war involving Iran,” he told Bernama. He added that concerns over potential disruptions in the Strait of Hormuz could significantly affect trade flows.
Commenting on reports Iran could allow oil shipments if traded in Chinese yuan, Mohd Afzanizam said this signals deeper shifts. “US de-dollarisation is reaching a new level as it becomes increasingly intertwined with geopolitics,” he said.
He noted the US dollar’s share in global foreign reserves has declined from 71.1% in Q1 1999 to 56.9% in Q3 2025. Investors will be watching the upcoming Federal Open Market Committee meeting on March 17–18.
US Federal Reserve staff projected the PCE inflation rate to ease to 2.4% in 2026. “On that note, the ringgit is expected to trade within a tight range against the greenback, possibly between RM3.92 and RM3.95 today,” he said.
At the opening, the ringgit traded higher against a basket of major currencies. It strengthened against the Japanese yen to 2.4630/4729 from 2.4683/4715.
It rose against the British pound to 5.2057/2262 from 5.2214/2273 and appreciated against the euro to 4.4940/5117 from 4.5093/5144. The local currency also traded higher against most ASEAN currencies.
It improved against the Singapore dollar to 3.0641/0767 from 3.0730/0767 and gained against the Thai baht to 12.1136/1696 from 12.1862/2062. It strengthened against the Indonesian rupiah to 231.7/232.7 from 232.1/232.5.
The ringgit also edged up against the Philippine peso to 6.58/6.61 from 6.59/6.60 previously.