KUALA LUMPUR: The ringgit closed higher against the US dollar on Monday, driven by hopes of a resolution to the war between the United States (US) and Iran although conditions remained highly fluid.
At 6 pm, the ringgit rose to 3.9510/9550 versus the greenback from Friday’s close of 3.9655/9700.
According to news reports, US Secretary of State Marco Rubio said on Monday that there might be news "maybe today” in the talks between Iran and the US to end the war.
Rubio, who is on a four-day visit to India, said US President Donald Trump is not going to make a bad deal and that the US is going to give diplomacy every chance to succeed.
Meanwhile, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid told Bernama that following the latest developments in US-Iran relations, all eyes would continue to focus on potential deals that could pave the way for the reopening of the Strait of Hormuz.
He said Malaysia’s improving macroeconomic fundamentals, particularly the stronger current account position and continued fiscal consolidation, indicate that the risk of the country slipping into a twin-deficit situation remains low.
The country’s current account surplus widened significantly to RM15.2 billion, or 3.0 per cent of gross domestic product (GDP), in the first quarter of 2026 from RM2.7 billion in the fourth quarter of last year, while the fiscal deficit is on track to narrow further to 3.5 per cent of GDP this year.
At the close, the ringgit traded higher against a basket of major currencies except the British pound.
It strengthened versus the Japanese yen to 2.4860/4887 from 2.4925/4954 at Friday’s close and appreciated against the euro to 4.5998/6044 from 4.6012/6064 previously, but it eased vis-a-vis the British pound to 5.3311/3365 from 5.3245/3305.
The local currency performed mixed against regional peers.
It rose versus the Singapore dollar to 3.0932/0966 from 3.0985/1023 at the end of last week and edged higher against the Indonesian rupiah to 222.6/223.0 from 223.8/224.1 previously.
The ringgit, however, weakened versus the Thai baht to 12.1640/1816 from 12.1421/1611 at Friday’s close and slipped vis-a-vis the Philippine peso at 6.43/6.44 from 6.42/6.44 previously. - Bernama
