Kuala lumpur: The ringgit closed higher against the US dollar on Monday, driven by hopes of a resolution to the ongoing war between the United States and Iran, although conditions remained highly fluid. At 6 pm, the ringgit rose to 3.9510/9550 versus the greenback from Friday's close of 3.9655/9700.
According to BERNAMA News Agency, US Secretary of State Marco Rubio mentioned on Monday that there might be news 'maybe today' in the talks between Iran and the US aimed at ending the war. Rubio, who is currently on a four-day visit to India, emphasized that US President Donald Trump is committed to avoiding a bad deal while giving diplomacy every opportunity to succeed.
Meanwhile, Bank Muamalat Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid told Bernama that following the latest developments in US-Iran relations, attention would remain on potential deals that could lead to the reopening of the Strait of Hormuz. He noted that Malaysia's improving macroeconomic fundamentals, particularly the stronger current account position and ongoing fiscal consolidation, suggest that the risk of the country slipping into a twin-deficit situation remains low.
The country's current account surplus significantly widened to RM15.2 billion, or 3.0 per cent of gross domestic product (GDP), in the first quarter of 2026 from RM2.7 billion in the fourth quarter of the previous year, while the fiscal deficit is on track to narrow further to 3.5 per cent of GDP this year.
At the close, the ringgit traded higher against a basket of major currencies except for the British pound. It strengthened versus the Japanese yen to 2.4860/4887 from 2.4925/4954 at Friday's close and appreciated against the euro to 4.5998/6044 from 4.6012/6064 previously, although it eased vis-a-vis the British pound to 5.3311/3365 from 5.3245/3305.
The local currency showed mixed performance against regional peers. It rose versus the Singapore dollar to 3.0932/0966 from 3.0985/1023 at the end of last week and edged higher against the Indonesian rupiah to 222.6/223.0 from 223.8/224.1 previously. However, the ringgit weakened versus the Thai baht to 12.1640/1816 from 12.1421/1611 at Friday's close and slipped vis-a-vis the Philippine peso at 6.43/6.44 from 6.42/6.44 previously.