KUALA LUMPUR — The Malaysian ringgit closed higher against several regional currencies on Friday but slipped slightly against the US dollar as investors adopted a cautious stance amid intensifying geopolitical tensions in the Middle East.
At the close of trading, the ringgit eased to around 3.9365/9410 against the US dollar, compared with the previous day’s 3.9240/9280, reflecting modest pressure from the stronger greenback. The movement comes as global investors increasingly turn to the US dollar as a safe-haven asset amid concerns that the escalating conflict in West Asia could disrupt global energy supplies.
Analysts said rising geopolitical risks have heightened market uncertainty, particularly as oil prices continue to climb due to fears of supply disruptions in key shipping routes. Higher energy prices typically strengthen the US dollar while weighing on emerging market currencies such as the ringgit.
Despite the weaker performance against the greenback, the Malaysian currency showed resilience against several other major currencies. The ringgit strengthened against the Japanese yen, British pound, and the euro, supported by relatively stable domestic economic conditions and ongoing demand for regional currencies.
Economists noted that global currency markets are currently being driven largely by geopolitical developments. The conflict in the Middle East has pushed investors toward safer assets, including the US dollar, which has strengthened broadly across international markets.
The surge in crude oil prices has also contributed to volatility in financial markets worldwide. Concerns about possible disruptions to energy supplies through critical shipping routes such as the Strait of Hormuz have raised inflation fears and increased uncertainty for investors.
Market observers believe the ringgit’s near-term performance will continue to depend on global geopolitical developments, particularly the trajectory of the Middle East conflict and movements in global oil prices. They also expect traders to closely monitor upcoming economic data from the United States, which could influence expectations on Federal Reserve monetary policy and further impact the US dollar’s strength.
For now, analysts say the ringgit remains relatively stable despite external pressures, supported by Malaysia’s steady domestic economic outlook and continued investor interest in the region’s financial markets.
