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THE ringgit advanced against the US dollar in early trade on Wednesday, buoyed by improving global sentiment as investors responded to signs that the United States may scale back its involvement in the Middle East conflict within weeks.
The local currency strengthened to 4.0200/0400 against the greenback at the opening, compared with 4.0475/0520 at the previous close, as demand for traditional safe-haven assets eased.
Market sentiment was lifted after US President Donald Trump signalled a potential withdrawal from Iran within two to three weeks, a development analysts said was sufficient to prompt a tentative shift back towards riskier assets.
“For markets, that was enough to ease some of the immediate safe-haven demand for the dollar, allowing regional currencies like the ringgit to recover, with investors tentatively rotating back into risk,” Mohd Sedek Jantan, director of investment strategy and country economist at IPPFA Sdn Bhd said.
Further support for the ringgit came from signs of softening in the US labour market, which weighed on the dollar.
The latest Job Openings and Labour Turnover Survey data showed vacancies fell to 6.88 million in February from a revised 7.24 million in January, reinforcing expectations of moderation in economic momentum.
“That matters for currency markets because the dollar’s recent strength has been closely tied to the resilience of US economic data. Any signs of moderation will begin to chip away at that support, particularly in shaping expectations around the US Federal Reserve outlook,” Mohd Sedek added.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the ringgit could continue to strengthen, potentially testing the psychologically significant RM4.00 level if geopolitical tensions continue to ease.
“At the current juncture, de-escalation is something the world needs. This could pave the way for the reopening of the Strait of Hormuz and allow reconstruction activities of the affected oil and gas facilities in the Gulf region,” he said.
In broader trading, the ringgit was mostly firmer against major currencies, rising against the British pound and Japanese yen, though it slipped slightly against the euro.
The local currency also traded higher against most regional peers, including the Singapore dollar, Indonesian rupiah and Philippine peso, while weakening marginally against the Thai baht, reflecting mixed sentiment across Asian markets as investors weighed geopolitical risks against shifting economic signals. - April 1, 2026