Kuala Lumpur, 13 March 2026 – The Malaysian ringgit opened slightly weaker against the U.S. dollar but strengthened against several major global currencies amid heightened risk aversion in financial markets driven by geopolitical tensions in West Asia.
At 8am, the ringgit eased to 3.9275/3.9400 against the US dollar, compared with 3.9240/3.9280 at Thursday’s close, as investors shifted towards safer assets and cash holdings.
Risk-Off Sentiment Pressures Emerging-Market Currencies
According to Bank Muamalat Malaysia chief economist Mohd Afzanizam Abdul Rashid, global markets have adopted a cautious stance amid escalating tensions in the Middle East and rising oil prices.
Brent crude prices surged nearly 10% to about US$101 per barrel, reflecting concerns that the ongoing conflict involving Iran could disrupt energy supply routes such as the Strait of Hormuz.
The spike in oil prices and the broader geopolitical uncertainty have prompted investors to move toward safer assets and reduce exposure to riskier currencies and markets.
Ringgit Strengthens Against Major Currencies
Despite the weaker performance against the US dollar, the ringgit strengthened against several major currencies:
- Japanese yen: 2.4666/2.4746 (from 2.4720/2.4746 previously)
- British pound: 5.2436/5.2603 (from 5.2554/5.2608)
- Euro: 4.5249/4.5393 (from 4.5361/4.5408)
The local currency also traded mostly higher against regional peers, including the Thai baht, Philippine peso, and Singapore dollar, while remaining largely unchanged against the Indonesian rupiah.
Markets Watching the Federal Reserve
Investors are also closely monitoring upcoming developments from the U.S. Federal Open Market Committee (FOMC), which will meet next week to decide on interest-rate policy.
Rising U.S. Treasury yields and concerns about fiscal deficits tied to the growing cost of war have also contributed to the stronger dollar and cautious trading sentiment in global currency markets.
Analysts expect the ringgit to remain sensitive to geopolitical developments and movements in energy prices in the near term, particularly as the Middle East conflict continues to influence investor sentiment across global markets.
