Kuala Lumpur, 2 March 2026 – The Malaysian ringgit opened slightly weaker against the U.S. dollar on the first trading day of March, as intensified risk-off sentiment linked to renewed military strikes in the Middle East weighed on investor confidence in emerging-market currencies.
At the start of trading, the ringgit eased by around 0.19 percent to about RM3.8985/9205 per U.S. dollar, compared with last Friday’s close of RM3.8910/8960, according to currency dealers in Kuala Lumpur.
Risk Sentiment and FX Movements
Market participants attributed the ringgit’s marginal decline to broader risk aversion following a joint U.S.-Israel strike on Iran over the weekend, which pressured global financial sentiment and lifted the appeal of safe-haven assets such as the U.S. dollar.
Investors often turn to the greenback during periods of uncertainty, particularly when global markets price in geopolitical risk, leading to downward pressure on many emerging market currencies including the ringgit.
Despite the modest opening weakness, analysts note that the ringgit has shown relative resilience in recent weeks, having traded in a range against the U.S. dollar and even strengthened against some regional peers prior to this week’s conflict-linked movements.
Outlook for Ringgit in Volatile Conditions
Looking ahead, currency strategists say the ringgit’s performance will likely remain sensitive to shifts in risk sentiment, oil prices, and global economic signals such as U.S. interest rate expectations. If geopolitical tensions ease or oil prices stabilise, the ringgit could recoup some of its losses against the U.S. dollar.
Conversely, persistent conflict in the Middle East and continued demand for safe-haven assets may sustain pressure on emerging currencies, including the ringgit, especially if higher energy prices feed into broader inflation and global financial volatility.
