Kuala lumpur: The ringgit closed higher against the US dollar today, supported by Malaysia's favourable domestic fundamentals. At 6 pm, the ringgit appreciated to 3.9595/9630 versus the greenback from 3.9675/9715 at Wednesday's close.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the ringgit should be in a better position as the country continues to record a current account surplus, while the government remains committed to reducing the fiscal deficit. He added that news on the potential finalisation of negotiations between the United States and Iran had led to lower crude oil prices, while the US Dollar Index (DXY) stabilised at around 99 points.

Dr Mohd Afzanizam further stated that some central banks remain under pressure to adjust interest rates to stem currency depreciation and contain inflationary pressure, especially in economies facing fiscal and current account deficits. Despite these global pressures, the ringgit showed resilience, trading mostly lower against a basket of major currencies but performing better against regional peers.

Specifically, the ringgit strengthened against the Japanese yen to 2.4906/4929 from 2.4942/4969 at Wednesday's close. However, it slipped against the euro to 4.6037/6078 from 4.5975/6022 and slid against the British pound to 5.3220/3267 from 5.3089/3143. Against regional peers, the local currency appreciated against the Singapore dollar to 3.0967/0997 from 3.0969/1003, rose against the Thai baht to 12.1304/1468 from 12.1341/1516, edged up against the Indonesian rupiah to 224.1/224.4 from 224.7/225.0, and remained flat against the Philippine peso at 6.43/6.44.