Kuala lumpur: The ringgit opened firmer against the US dollar and major currencies on Friday, supported by easing geopolitical tensions in West Asia and Malaysia's improving macroeconomic outlook. At 8 am, the local currency strengthened to 3.9550/9645 against the greenback from Thursday's close of 3.9595/9630.
According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid noted that optimism is building around the potential for the United States and Iran to reach an amicable resolution. This sentiment is reflected in the declining prices of West Texas Intermediate (WTI) and Brent crude, which fell by 1.49 percent and 2.32 percent to US$97.79 per barrel and US$102.58 per barrel, respectively. The Iranian news agency reported that Tehran is currently evaluating a proposal from the US, which has helped to narrow the gaps to some extent.
Mohd Afzanizam further highlighted Malaysia's positive macroeconomic backdrop, particularly with the current account surplus rising to 3.0 percent of the gross domestic product (GDP) in the first quarter of 2026 from 0.5 percent in the previous quarter. Additionally, the government's fiscal position has improved, with the fiscal deficit narrowing to RM17.1 billion or 3.3 percent of GDP in the first quarter of 2026, down from RM21.9 billion or 4.5 percent of GDP in the same period of 2025. Consequently, the ringgit is expected to remain well supported at around RM3.95 to RM3.96 against the US dollar today.
At the market opening, the ringgit also 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 Thursday'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.
Additionally, the ringgit showed gains against regional currencies. It strengthened against the Singapore dollar to 3.0949/1026 from 3.0967/0997 previously, appreciated against the Thai baht to 12.1286/1648 from 12.1304/1468, 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.