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KUALA LUMPUR, May 28, 2026 — Malaysia’s ringgit opened Thursday on a firmer footing against most major currencies, though it slipped slightly against the US dollar, as investors weighed fragile negotiations between Washington and Tehran over the escalating conflict in the Middle East.
The local unit traded at RM3.9670/9770 against the greenback, compared with Tuesday’s close of RM3.9660/9705.
Analysts described the move as a reflection of cautious optimism, tempered by persistent concerns over inflation and oil supply risks.
Regional Currency Moves
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The ringgit strengthened against the Japanese yen, euro, British pound, and Thai baht, while holding steady against the Philippine peso and Indonesian rupiah.
It slipped modestly against the Singapore dollar, underscoring the uneven sentiment across Asia’s currency markets.
Geopolitical Crosscurrents
Negotiations between the United States and Iran remain a critical driver of market sentiment.
Iranian state media suggested progress in talks, but President Donald Trump reiterated his hardline stance, particularly over control of the Straits of Hormuz, a vital artery for global oil shipments.
Any disruption in the strait could send oil prices sharply higher, amplifying inflationary pressures worldwide.
On Wednesday, WTI crude rose 1.40 percent to US$89.92 per barrel, while Brent crude slipped 5.31 percent to US$94.29 per barrel, reflecting volatility in energy markets.
Inflation and Fed Policy
The specter of rising US inflation continues to loom large. Investors expect the Federal Reserve to maintain a hawkish stance, potentially lifting interest rates further.
The US Dollar Index (DXY) hovered at 99.21 points, up 0.04 percent, signaling resilience in the greenback despite global uncertainty.
Expert View
Dr. Mohd Afzanizam Abdul Rashid, Chief Economist at Bank Muamalat Malaysia, said the ringgit’s trajectory remains tethered to geopolitical headlines.
“Conflicting signals from Iran and the US are shaping sentiment. Equity markets are buoyant, but the ringgit’s path will depend on how negotiations unfold and how the Fed signals its next move,” he noted.
He projected the ringgit US dollar pair to trade between RM3.95 and RM3.97 for the day.
For Southeast Asia, the ringgit’s volatility highlights the region’s exposure to global oil prices and geopolitical risks.
Traders are advised to monitor developments in the Middle East closely, as any escalation could ripple across energy markets and currency flows.
