Kuala lumpur: The ringgit, along with other regional currencies, experienced a decline against the US dollar as geopolitical tensions persisted, particularly due to the escalating US-Israel conflict. As of 6 pm, the ringgit fell to 4.0280/0350 against the US dollar, compared to last Friday's close of 4.0105/0140.
According to BERNAMA News Agency, regional currencies such as the Singapore dollar, Indonesian rupiah, and Philippine peso also weakened against the US dollar. Bank Muamalat Malaysia Bhd's chief economist, Mohd Afzanizam Abdul Rashid, noted that despite market uncertainties, JP Morgan has provided a positive review, indicating that Malaysia remains in a strong position to navigate the current challenges. He highlighted Malaysia's status as a net oil exporter and recent fiscal consolidation efforts as contributing factors to the country's improved fiscal space, which may benefit the ringgit.
MBSB Investment Bank Bhd's Weekly Money Review reported that the US dollar gained strength against major currencies last week, with the US dollar index (DXY) rising by 0.5 percent week-on-week to 100.15. The report attributed the dollar's firmness to ongoing geopolitical volatility, specifically the conflict involving Iran and threats to Middle East energy corridors.
Additionally, the review mentioned that Brent crude is trading near its 2022 highs, and markets are bracing for potential hostilities extending into April 2026, which could lead to a prolonged supply-side shock and a global repricing of inflation and growth expectations. It also noted that sentiment in the foreign exchange market is likely to remain cautious due to the absence of de-escalation negotiations, ensuring continued military confrontations.
By the close of trading, the ringgit weakened against a basket of major currencies, except the British pound. It strengthened against the British pound to 5.3311/3403 from last week's 5.3368/3414 but fell against the Japanese yen to 2.5237/5282 and the euro to 4.6294/6374. The local currency also registered declines against ASEAN currencies, dropping versus the Singapore dollar, Thai baht, Indonesian rupiah, and Philippine peso.