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THE ringgit edged lower against the US dollar at the start of March trading, as investors retreated to safe-haven assets following a joint United States–Israel strike on Iran and renewed concerns over energy supply disruptions.
At 8.01am, the local currency eased 0.19 per cent to 3.8985/9205 against the greenback, compared with 3.8910/8960 at last Friday’s close, reflecting heightened global uncertainty and a broad risk-off tone in financial markets.
Bank Muamalat Malaysia Berhad Chief Economist Dr Mohd Afzanizam Abdul Rashid said markets were focused on how long and how severely the conflict might unfold.
“Iran's move to halt traffic through the Strait of Hormuz and the potential escalation into a regional conflict are immediate risks. As a result, crude oil prices could spike and business sentiment could weaken.
“Coupled with concerns over the risk of stagflation in the US, which could also affect other countries, this risk-off environment could see the ringgit trade weaker today,” he told Bernama.
Oil prices surged in early trading, underscoring fears of supply disruption in one of the world’s most critical shipping lanes. West Texas Intermediate crude rose 7.01 per cent to US$71.72 per barrel, while Brent crude gained 7.34 per cent to US$78.22.
Despite softening against the US dollar, the ringgit strengthened against a basket of major currencies at the opening bell.
It appreciated against the euro to 4.5835/6093 from 4.5898/5957 previously, rose against the Japanese yen to 2.4885/5027 from 2.4930/4963, and edged higher against the British pound to 5.2252/2546 from 5.2470/2538.
Against regional peers, performance was mixed.
The ringgit firmed against the Singapore dollar to 3.0697/0873 from 3.0742/0784 and strengthened versus the Thai baht to 12.4732/5512 from 12.5153/5370.
However, it slipped against the Philippine peso to 6.76/6.80 from 6.75/6.76 and weakened against the Indonesian rupiah to 232.1/233.6 from 231.7/232.2.
Market participants are expected to monitor developments in the Gulf closely, with currency movements likely to remain sensitive to shifts in oil prices and broader geopolitical risk sentiment. - March 2, 2026