KUALA LUMPUR, March 5 — The Malaysian ringgit snapped a three‑day losing streak to close higher against the US dollar on Wednesday, supported by renewed demand for the local currency amid cautious investor sentiment and lingering geopolitical concerns. At 6 pm, the ringgit strengthened by 0.09 per cent, trading at 3.9395/9465 against the greenback, compared with 3.9440/9495 at Tuesday’s close.
Despite the modest gain, trading remained range‑bound as investors stayed cautious in light of ongoing geopolitical turmoil in the Middle East — particularly the conflict involving the United States and Israel against Iran — and its potential impact on global markets and inflation.
Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, highlighted that market participants were closely watching how the escalation in geopolitical tensions could affect global crude oil supplies and, in turn, fuel prices. Countries dependent on Middle Eastern oil imports — including major Asian economies such as China, India, Japan and South Korea — might face disruptions that could ripple through global inflation dynamics.
Looking ahead, attention was also shifting to the Bank Negara Malaysia Monetary Policy Committee (MPC) meeting, where the central bank was widely expected to maintain the Overnight Policy Rate (OPR) at 2.75 per cent amid ongoing economic risks. Market watchers are keen to see how the central bank assesses the implications of geopolitical developments on both global and domestic economic conditions.
At the close, the ringgit’s performance against other major currencies was mixed. It strengthened slightly against the euro but weakened against the British pound and Japanese yen. Against its ASEAN peers, the local unit eased versus the Singapore dollar and Thai baht, but appreciated versus the Indonesian rupiah and Philippine peso.
The ringgit’s modest rebound came after previous sessions of weakness driven by heightened risk aversion among global investors. As markets navigated a backdrop of uncertainty resulting from geopolitical tensions and potential supply shocks in global oil markets, analysts noted that currency movements could remain volatile in the near term.
