Kuala Lumpur, 25 March 2026 – The ringgit opened higher against the US dollar on Wednesday, supported by a better risk backdrop in global markets as investors reacted to signs of possible de-escalation in tensions involving the United States and Iran. At the opening, the local currency strengthened to 3.9400/9500 against the greenback, compared with Tuesday’s close of 3.9530/9585.
The firmer start for the Malaysian currency came as the US Dollar Index remained below the 100-point mark, reflecting softer demand for the dollar as a safe-haven asset. Analysts said improved sentiment encouraged investors to rotate into risk-sensitive assets and regional currencies, helping the ringgit gain not only against the US dollar but also against a basket of other major currencies in early trade.
Even so, the broader market tone remained cautious. Fresh PMI readings from several major economies, including Australia, Japan, India, France, Germany, the United Kingdom and the United States, pointed to softer services activity in March, underscoring lingering concerns over global growth momentum. That means the ringgit’s strength may continue to depend heavily on whether geopolitical tensions ease further and whether the US dollar stays on the defensive.
For Malaysian investors, the stronger ringgit adds to a broader narrative of resilience that has helped draw global attention to the country in recent months. It was reported in February that foreign investors have been increasingly positive on Malaysia, supported by firm economic growth, stable policy settings and stronger capital inflows, with some banks forecasting further upside for the ringgit by end-2026.
