KUALA LUMPUR, May 22 — The ringgit opened firmer against the US dollar and major currencies today, supported by easing geopolitical tensions in West Asia and Malaysia’s improving macroeconomic outlook.
At 8am, the local currency strengthened to 3.9550/9645 against the greenback from yesterday’s close of 3.9595/9630.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said optimism that the United States and Iran would soon reach an amicable resolution continues to build.
He said West Texas Intermediate (WTI) and Brent crude prices fell 1.49 per cent and 2.32 per cent to US$97.79 per barrel and US$102.58 per barrel, respectively.
“Tehran is evaluating the proposal from the US, which has narrowed the gaps to some extent,” he told Bernama, citing Iranian state news agency IRNA.
He also said the ringgit should stay in a better position amid Malaysia’s positive macroeconomic backdrop, especially as the current account surplus rose to 3 per cent of gross domestic product (GDP) in the first quarter of 2026 from 0.5 per cent the previous quarter.
“Apart from that, the government’s fiscal position continues to improve, with the fiscal deficit narrowing to RM17.1 billion or 3.3 per cent of GDP in the first quarter of 2026 from RM21.9 billion or 4.5 per cent of GDP in the corresponding period of 2025.
“Hence, the ringgit is expected to remain well supported at around RM3.95 to RM3.96 against the US dollar today,” he said.
At the open, the ringgit traded higher against a basket of major currencies.
The local currency appreciated against the British pound to 5.3120/3247 from 5.3220/3267 at yesterday’s close, strengthened against the euro to 4.5945/6056 from 4.6037/6078 previously, and rose against the Japanese yen to 2.4866/4928 from 2.4906/4929.
The ringgit also traded higher against regional currencies.
It strengthened against the Singapore dollar to 3.0949/1026 from 3.0967/0997 previously and appreciated against the Thai baht to 12.1286/1648 from 12.1304/1468.
The local note also improved against the Indonesian rupiah to 223.8/224.5 from 224.1/224.4 previously and appreciated against the Philippine peso to 6.42/6.44 from 6.43/6.44 previously.
