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THE ringgit weakened on Monday as global investors sought refuge in safe-haven assets amid the ongoing West Asia conflict, which has now extended beyond a month, unsettling market sentiment.
At 8am, the local currency was quoted at 4.0125/4.0305 against the US dollar, a slight decline from last Friday’s close of 4.0105/4.0140.
Bank Muamalat Malaysia Berhad Chief Economist Dr Mohd Afzanizam Abdul Rashid said the foreign exchange market remains in “risk-off” mode as traders continue to gauge the economic fallout from the US-Iran conflict.
“The US Dollar Index (DXY) climbed toward 100.328 points, indicating that traders and investors are seeking refuge in the US dollar,” he said.
He added that global bond fund managers, including PIMCO and JP Morgan, have warned that bond prices may rally as the conflict threatens to slow global growth.
Afzanizam noted that central banks might be compelled to lower interest rates in response to these conditions, meaning the ringgit is expected to remain above the RM4.00 level amid heightened risk aversion.
Market participants are also closely monitoring upcoming United States labour market data, with Nonfarm Payrolls (NFPs) for February having contracted by 92,000 jobs, contrary to forecasts for an increase of 56,000.
“Signs of a softening US labour market are becoming more visible, particularly as gasoline prices have surged following the war in Iran, dampening business and consumer sentiment,” he explained.
He added that investors are closely watching how the ongoing conflict will influence the Federal Open Market Committee’s decisions in the coming months.
Elsewhere, the ringgit strengthened modestly against several major currencies. It rose against the British pound to 5.3101/5.3340 from 5.3368/5.3414 at last Friday’s close, climbed versus the euro to 4.6108/4.6314 from 4.6197/4.6237, and edged up against the Japanese yen to 2.5044/2.5158 from 2.5084/2.5109.
Against regional currencies, the local unit appreciated against the Singapore dollar to 3.1100/3.1244 from 3.1164/3.1194, gained versus the Thai baht to 12.1624/12.2255 from 12.1903/12.2077, edged down slightly against the Indonesian rupiah to 236.3/237.4 from 236.1/236.5, and remained flat against the Philippine peso at 6.62/6.66.
The ringgit’s movements reflect persistent investor caution as the West Asia conflict continues to influence global currency and financial markets. - March 30, 2026
