Ringgit ends 3-day rally against greenback amid geopolitical concerns

 Investors are focused on geopolitical tensions and the increasingly hawkish stance adopted by central banks globally, says analyst.

KUALA LUMPUR:

The ringgit retreated against the US dollar today, ending a three-day winning streak as investors focused on geopolitical tensions and the increasingly hawkish stance adopted by central banks globally.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the ringgit was mostly in a narrow range with the US dollar today, languishing around RM3.9583 to RM3.9688.

“The ongoing negotiation between the US and Iran is still the main focus while central banks across the globe seem to be taking a more hawkish stance,” he told Bernama.

The ringgit firmed against the US dollar for the past three days as market sentiment improved on the back of Malaysia’s trade performance, which rose 28.6% year-on-year (y-o-y) to a record RM336.73 billion in April 2026.

The investment, trade and industry ministry (Miti) earlier this week reported that the higher export figures were driven mainly by strong exports of electrical and electronic (E&E) products.

Malaysia’s trade maintained strong momentum in April 2026 with exports and imports reaching record highs despite heightened global uncertainties, including geopolitical tensions in West Asia that led to higher logistics costs, supply chain disruptions and commodity price volatility.

Miti also said exports extended their growth momentum for the 10th consecutive month, surging 36.9% to a record RM182.74 billion, surpassing the previous high of RM152.77 billion recorded in December 2025 by RM30 billion, while imports rose 20% to RM153.99 billion.

At 6pm, the ringgit fell to 3.9655/3.9700 versus the greenback from 3.9595/3.9630 at yesterday’s close.

At the close, the ringgit traded mostly lower against a basket of major currencies.

It weakened versus the Japanese yen to 2.4925/2.4954 from 2.4906/2.4929 at yesterday’s close, slid against the British pound to 5.3245/5.3305 from 5.3220/5.3267 previously, but gained against the euro to 4.6012/4.6064 from 4.6037/4.6078 yesterday.

At the same time, the local currency was mixed against regional peers.

It fell against the Singapore dollar to 3.0985/3.1023 from 3.0967/3.0997 at the close yesterday, down against the Thai baht to 12.1421/12.1611 from 12.1304/12.1468 yesterday, but edged up against the Indonesian rupiah to 223.8/224.1 from 224.1/224.4 previously.

It was almost flat against the Philippine peso at 6.42/6.44 from 6.43/6.44. - FMT