Ringgit rises against US dollar after IEA bid to release oil reserves

KUALA LUMPUR, March 12 — Malaysia’s currency, the ringgit, opened stronger against the US dollar and several major currencies today, supported by stabilising global oil prices after a move by the International Energy Agency to release additional oil reserves into the market.

At 8am, the ringgit edged higher to 3.9130/9350 against the US dollar, compared with 3.9175/9230 at the previous close, reflecting renewed support for the Malaysian currency amid easing energy market volatility.

Oil Reserve Release Stabilises Global Markets

Economists said the ringgit’s stronger performance was largely influenced by stabilising oil prices following the IEA’s proposal to release oil reserves. The move is intended to increase global supply and calm energy markets that have been experiencing sharp fluctuations.

Global oil markets have been under pressure due to rising geopolitical tensions and disruptions to supply routes, which pushed crude prices higher and raised concerns about inflation and economic stability worldwide.

The decision to release additional oil reserves is seen as a coordinated effort among major economies to ensure sufficient supply and prevent further spikes in energy prices.

Support for Commodity-Linked Currencies

Analysts noted that the stabilisation of oil prices tends to benefit commodity-linked currencies such as the Malaysian ringgit.

As an oil-producing nation, Malaysia’s economy is partially influenced by energy market trends. When oil prices stabilise or improve, investor sentiment toward the ringgit often strengthens.

The easing of market volatility following the IEA announcement helped boost confidence in regional currencies, including the ringgit.

Market Sentiment Remains Cautious

Despite the ringgit’s gains, analysts said financial markets remain cautious due to ongoing geopolitical tensions and uncertainty in global energy supply chains.

The broader economic outlook continues to depend heavily on developments in global conflicts, energy market stability and policy responses from major economies.

Investors are closely monitoring geopolitical developments and further actions by international energy authorities to determine how long the current stability in oil markets may last.

Ringgit Also Gains Against Other Major Currencies

In addition to strengthening against the US dollar, the ringgit also showed improvement against several other major currencies in early trading.

The local currency recorded gains against the Japanese yen, the euro and the British pound as investors reacted to improving global risk sentiment and stabilising commodity prices.

Economists said the ringgit’s performance will likely continue to depend on external factors such as global oil prices, international monetary policy decisions and geopolitical developments.