World · Malaysia Bureau
Ringgit strengthens against dollar as US-Iran tensions ease
The Malaysian ringgit gained ground against the US dollar on hopes of de-escalation in Middle Eastern tensions. The currency movement reflected a broader softening in the greenback and retreat in oil prices.
LSN Malaysia ·
The ringgit closed higher against the US dollar as risk sentiment improved following signs of easing tensions between the United States and Iran. The currency advance was supported by a 0.14% decline in the US Dollar Index, which fell to 101.51, indicating weakness in the broader greenback.
Oil markets also reflected the more optimistic outlook, with Brent crude prices sliding to US$89.89 a barrel. The pullback in energy costs typically benefits currencies in the region that are sensitive to commodity price swings.
Analysts attributed the ringgit's performance to the combination of a weaker dollar and reduced geopolitical risk premiums in commodity markets. The softening of US currency strength against a basket of major currencies created favourable conditions for emerging market currencies including the ringgit.
The movement underscores how regional currencies remain responsive to both global monetary conditions and shifts in risk appetite. Market participants will continue monitoring developments in US-Iran relations and the Federal Reserve's policy stance for further direction.