Kuala lumpur: The ringgit strengthened against regional peers at the close as investors' risk appetite improved, underpinned by growing confidence in safe passage through the Strait of Hormuz. At 6 pm, the local currency also firmed to 3.9540/9575 against the US dollar from 3.9690/9740 at Thursday's close. The local market was closed on May 1 for the Labour Day public holiday.

According to BERNAMA News Agency, SPI Asset Management managing partner Stephen Innes said the United States' signal that it is preparing to safeguard energy shipments points to easing geopolitical tensions, giving risk assets room to recover. Reports indicate that President Donald Trump announced the United States would begin escorting neutral foreign vessels through the Strait of Hormuz from Monday, describing the move as a 'humanitarian gesture' to protect countries caught in a conflict not of their making. He added that the United States would use its 'best efforts' to guide ships and crews through the restricted passage, ensuring vessels would not return until conditions were safe for navigation.

Meanwhile, Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid expressed shipping executives' ongoing caution about the initiative due to limited details. He noted that such actions could provoke Iranian forces, potentially leading to further escalation with the US. Consequently, traders are likely to focus on Bank Negara Malaysia's Monetary Policy Committee meeting for its latest assessment of the Malaysian economy.

At the close, the ringgit traded mostly lower against a basket of major currencies. It slipped against the Japanese yen to 2.5186/5210 from 2.4907/4942 at last Thursday's close, depreciated versus the British pound to 5.3612/3660 from 5.3593/3661, but rose against the euro to 4.6329/6370 from 4.6417/6476 previously. However, the local currency was firmer against regional peers, strengthening against the Singapore dollar to 3.1019/1049 from 3.1061/1103, gaining against the Thai baht to 12.1460/1631 from 12.1711/1932, edging up versus the Indonesian rupiah to 227.3/227.6 from 228.7/229.2, and advancing against the Philippine peso to 6.42/6.43 from 6.45/6.47 previously.