Kuala Lumpur: The ringgit ended higher against the US dollar, buoyed by the apparent ceasefire in the Israel-Iran conflict, said an economist. At 6 pm, the local note rose to 4.2410/2465 versus the greenback from Monday’s close of 4.2915/2980.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the de-escalation also led benchmark Brent crude oil prices to retreat to US$69.56 per barrel as risks to global oil supply appear contained for now. “Financial markets are responding with a sense of relief, and risk appetite is gradually returning,” he stated. However, he cautioned that it is still early days, with investors remaining cautious amid lingering uncertainties, particularly with the US tariff pause set to expire in early July.

On the domestic front, Mohd Afzanizam mentioned that Malaysia’s latest consumer price index (CPI) reading of 1.2 per cent reinforces the view that monetary policy remains tight, with real interest rates rising further. He summarized that market sentiment may stay guarded in the short term, while policymakers are likely to remain vigilant in balancing growth and stability.

At the closing, the ringgit traded mostly lower against a basket of major currencies. It trended lower against the Japanese yen at 2.9256/9296 from 2.9028/9074 at Monday’s close and declined versus the British pound to 5.7707/7782 from 5.7437/7524. However, it improved against the euro to 4.9225/9289 from 4.9236/9311 previously.

The local note trended higher against its ASEAN counterparts. It advanced vis-a-vis the Indonesian rupiah to 259.3/259.7 from 260.2/260.7 at yesterday’s close and gained against the Philippine peso to 7.41/7.44 from 7.44/7.46. The ringgit also appreciated against the Singapore dollar to 3.3130/3178 from 3.3188/3243 and strengthened to 12.9793/13.0021 from 12.9998/13.0250 versus the Thai baht previously.