Malaysian Ringgit Opens Stronger Against US Dollar on Improved Sentiment Over Potential US-Iran Truce

Kuala Lumpur, May 29, 2026 – The Malaysian ringgit kicked off trading on a firmer note against the US dollar this morning, buoyed by positive market sentiment following unconfirmed reports of a possible 60-day truce between the United States and Iran.

At 8am, the local currency was quoted at 3.9755/9815 against the greenback, an improvement from Thursday’s closing level of 3.9770/9805. The upbeat mood in the market came as investors reacted favourably to news of the potential ceasefire, which helped ease tensions in the Middle East and triggered a drop in global oil prices.

Brent crude fell 1.04% to US$93.31 per barrel amid the development, reflecting growing fatigue among traders over prolonged and unstable negotiations.

Supporting the ringgit’s gain, fresh US economic data painted a softer picture for the world’s largest economy. The personal consumption expenditures (PCE) inflation rate rose to 3.8% in April from 3.5% the month before, while initial jobless claims climbed to 215,000 last week from 210,000 previously. The US Dollar Index (DXY) slipped 0.21% to 98.997 points as a result.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid expects the ringgit to trade within a narrow band of RM3.95 to RM3.97 against the US dollar for the rest of the day.

“News on the 60-day US-Iran truce has led to a decline in Brent crude oil prices by 1.04 per cent to US$93.31 per barrel. The news is unconfirmed, but the market has reacted positively. This suggests that the investing community is fatigued with the nature of the unstable negotiations,” he told Bernama.

Meanwhile, the ringgit traded weaker against most other major currencies. It eased to 5.3447/3527 against the British pound (from 5.3272/3319), 4.6323/6392 versus the euro (from 4.6181/6222), 2.4961/5000 against the Japanese yen (from 2.4947/4970), 3.1151/1201 versus the Singapore dollar (from 3.1085/1115), and 12.2083/2338 against the Thai baht (from 12.1613/1773).

The ringgit was broadly unchanged against the Indonesian rupiah at 222.7/223.2 (versus 222.8/223.1) and held steady against the Philippine peso at 6.45/6.46.

Market watchers will be closely monitoring further developments on the geopolitical front as well as incoming US data for fresh direction on the ringgit in the coming sessions.