KUALA LUMPUR, 13 April 2026 – The Malaysian ringgit opened mostly stronger against major currencies but edged lower against the U.S. dollar, reflecting ongoing global uncertainty and persistent safe-haven demand for the greenback.
The local currency’s mixed performance highlights the growing divergence in global currency markets, where geopolitical tensions and rising oil prices are reshaping capital flows.
According to market data, the ringgit strengthened against several key currencies, including the euro, British pound and Japanese yen. However, it weakened slightly versus the U.S. dollar as investors continued to favour the greenback amid escalating tensions linked to the Middle East conflict.
Dollar Strength Remains the Key Pressure Point
The primary driver behind the ringgit’s softer performance against the dollar is the surge in safe-haven demand. As geopolitical risks intensify, particularly following the collapse of U.S.-Iran talks and the looming Strait of Hormuz blockade, investors have shifted capital into the U.S. dollar.
This dynamic has placed emerging market currencies, including the ringgit, under pressure despite otherwise stable domestic conditions.
Mixed Signals Reflect Global Market Tensions
The ringgit’s gains against other major currencies suggest underlying resilience, supported by Malaysia’s relatively stable economic fundamentals and ongoing capital flows.
However, the currency remains sensitive to external developments, particularly:
- Oil price volatility
- Global interest rate expectations
- Risk sentiment driven by geopolitics
The current environment has created a split trend where regional currencies can strengthen broadly but still weaken against the dollar due to its dominant safe-haven status.
Oil Shock Adds Another Layer of Complexity
The surge in global oil prices triggered by geopolitical disruptions, adds further complexity to the ringgit’s outlook.
While Malaysia is an oil-producing nation, higher energy prices can still feed into inflationary pressures and influence monetary policy expectations. At the same time, elevated oil prices tend to strengthen the U.S. dollar, indirectly weighing on emerging market currencies.
Outlook: External Factors Still in Control
Looking ahead, analysts expect the ringgit to remain influenced primarily by global developments rather than domestic factors.
Any stabilisation in geopolitical tensions or easing in oil prices could reduce demand for the dollar, potentially allowing the ringgit to regain upward momentum across the board.
For now, the currency market is sending a clear signal: external forces particularly geopolitics and energy markets are firmly in control.
For investors, this reinforces the importance of monitoring global risk sentiment, as currency movements across Asia increasingly reflect shifts in capital flows rather than purely domestic fundamentals.
