The local currency strengthens to 3.9550/3.9645 as optimism builds over a US-Iran resolution.
At 8am, the local currency strengthened to 3.9550/3.9645 against the greenback from Thursday’s close of 3.9595/3.9630.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said optimism that the US and Iran would soon reach an amicable resolution continues to build.
He said West Texas Intermediate (WTI) and Brent crude prices fell 1.49% and 2.32% to US$97.79 per barrel and US$102.58 per barrel, respectively.
“According to the Iranian news agency, Tehran is evaluating the proposal from the US, which has narrowed the gaps to some extent,” he noted.
He also said the ringgit should remain in a better position amid Malaysia’s positive macroeconomic backdrop, particularly as the current account surplus rose to 3.0% of gross domestic product (GDP) in the first quarter of 2026 from 0.5% in the previous quarter.
“Apart from that, the government’s fiscal position continued to improve, with the fiscal deficit narrowing to RM17.1 billion or 3.3% of GDP in the first quarter of 2026 from RM21.9 billion or 4.5% of GDP in the corresponding period of 2025
“Hence, the ringgit is expected to remain well supported at around RM3.95 to RM3.96 against the US dollar today,” he said.
At the opening, the ringgit traded higher against a basket of major currencies.
The local currency appreciated against the British pound to 5.3120/5.3247 from 5.3220/5.3267 at Thursday’s close, strengthened against the euro to 4.5945/4.6056 from 4.6037/4.6078 previously, and rose against the Japanese yen to 2.4866/2.4928 from 2.4906/2.4929.
The ringgit also traded higher against regional currencies.
It strengthened against the Singapore dollar to 3.0949/3.1026 from 3.0967/3.0997 previously and appreciated against the Thai baht to 12.1286/12.1648 from 12.1304/12.1468.
The local note also improved against the Indonesian rupiah to 223.8/224.5 from 224.1/224.4 previously and appreciated against the Philippine peso to 6.42/6.44 from 6.43/6.44 previously. - FMT
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