Middle East Tensions Stir Markets, Ringgit Holds Firm
Despite a firm US Dollar Index (DXY), the ringgit opened stronger on Monday against the greenback and a slew of major and regional currencies, with geopolitical anxieties dominating sentiment.
At 8am, the local unit stood at 4.2420/2655 against the US dollar, up from Friday's close of 4.2505/2565. This came as the US launched airstrikes on Iranian nuclear sites, raising fears of a broader conflict involving Israel and Iran.
'The focus is clearly on how it might impact crude oil prices and risk sentiment,' said Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid. He noted Brent crude had jumped 2.49% to US$78.93 a barrel — its highest level since January 2025 — amid concerns that Iran could respond by leveraging control of the Straits of Hormuz.
Afzanizam added that while the ringgit firmed initially, the currency market remains cautious, with potential downside risks as traders shift into risk-off mode. The US Dollar Index has reached 98.937 points, while spot gold rose 0.27% to US$3,377.42 per ounce.
Against other major currencies, the ringgit rose to 2.9023/9186 against the Japanese yen from 2.9245/9289, strengthened to 5.7000/7316 versus the British pound from 5.7356/7437, and edged up to 4.8800/9070 against the euro from 4.9000/9069.
The ringgit also posted gains against regional peers — improving to 3.2948/3133 against the Singapore dollar, 12.9243/13.0042 versus the Thai baht, 258.6/260.2 vis-a-vis the Indonesian rupiah, and 7.42/7.46 against the Philippine peso. Related
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