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THE local currency appreciated to 3.9655/9710 against the greenback at 8am, compared with Wednesday’s close of 3.9675/9715, as investors reacted positively to easing concerns over supply disruptions in the Strait of Hormuz.
According to Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid, crude oil prices retreated after US President Donald Trump indicated that negotiations between Washington and Tehran were approaching a breakthrough.
He said West Texas Intermediate and Brent crude prices declined by 0.82 per cent and 5.46 per cent respectively, settling at US$107.77 and US$105.20 per barrel.
“This has raised hopes that the Strait of Hormuz will soon reopen, allowing the free flow of oil, gas and other goods,” he told Bernama.
The softer oil market sentiment also coincided with a weaker US Dollar Index, which slipped 0.21 per cent to 99.122 points despite the release of minutes from the Federal Open Market Committee meeting that suggested policymakers remained inclined towards further interest rate increases.
The minutes indicated inflation in the United States was expected to remain above the Federal Reserve’s two per cent target for a prolonged period, reinforcing expectations that monetary tightening could continue.
Despite its gains against the US dollar, the ringgit traded weaker against most major global currencies at the opening.
The local note depreciated against the British pound to 5.3265/3338 from 5.3089/3143 previously, weakened against the euro to 4.6091/6155 from 4.5975/6022, and edged lower against the Japanese yen to 2.4954/4991 from 2.4942/4969.
Across the regional market, the ringgit posted a mixed performance.
It weakened against the Thai baht to 12.1723/1963 from 12.1341/1516 and slipped against the Singapore dollar to 3.1027/1072 from 3.0969/1003.
However, the Malaysian currency strengthened marginally against the Indonesian rupiah to 224.6/225.0 from 224.7/225.0 and improved against the Philippine peso to 6.42/6.44 from 6.43/6.44 previously. - May 21, 2026