KUALA LUMPUR: The ringgit opened higher against the US dollar on Tuesday as market participants are likely to focus on negotiations between the United States and Iran, with the two-week ceasefire, which commenced on April 7, set to expire on Wednesday.
At 8.26 am, the local currency rose to 3.9450/9505 against the greenback from 3.9515/9555 at yesterday’s close.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said there is an indication that Iran will participate in the talks.
"Judging from the WTI and Brent crude prices, which currently hover around US$88.19 per barrel and US$95.48 per barrel, respectively, traders and investors are hopeful that some agreement can be achieved and the ceasefire extended to allow more negotiations to take place,” he told Bernama.
Meanwhile, Mohd Afzanizam said the latest data indicate the Malaysian economy remains resilient in the first quarter of 2026 (1Q 2026).
He noted that gross domestic product growth came in at 5.3 per cent, while nominal exports in 1Q 2026 increased by 12.7 per cent, up from 11.0 per cent in the preceding quarter.
"However, 2Q 2026 economic activities are likely to be marred by high fuel prices and some businesses would pass on their cost to the end consumers.
"As such, ringgit is likely to maintain its narrow range trade as traders and investors would learn more about the negotiation in the Middle East. Perhaps, the USD-MYR exchange would linger around RM3.95 to RM3.96 today,” he added.
At the opening, the ringgit traded higher against a basket of major currencies.
It strengthened against the British pound to 5.3356/3431 from 5.3412/3466 at yesterday’s close, slightly higher versus the euro to 4.6480/6545 from 4.6489/6536, and gained against the Japanese yen to 2.4819/4855 from 2.4863/4890.
The local currency traded mixed against its ASEAN peers.
It climbed against the Singapore dollar to 3.1053/1101 from yesterday’s close of 3.1077/1111, appreciated versus the Thai baht to 12.3204/3438 from 12.3127/3313, edged up against the Indonesian rupiah at 229.7/230.2 from 230.1/230.5 and rose against the Philippines peso to 6.57/6.59 from 6.58/6.60. - Bernama
