By MalayMail
KUALA LUMPUR, May 22 — 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.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said optimism that the United States (US) and Iran would soon reach an amicable resolution continues to build.
He said West Texas Intermediate (WTI) and Brent crude prices fell 1.49 per cent and 2.32 per cent to US$97.79 per barrel and US$102.58 per barrel, respectively.
“According to the Iranian news agency, Tehran is evaluating the proposal from the US, which has narrowed the gaps to some extent,” he told Bernama.
He also said the ringgit should remain in a better position amid Malaysia’s positive macroeconomic backdrop, particularly as the current account surplus rose to 3.0 per cent of gross domestic product (GDP) in the first quarter of 2026 from 0.5 per cent in the previous quarter.
“Apart from that, the government’s fiscal position continued to improve, with the fiscal deficit narrowing to RM17.1 billion or 3.3 per cent of GDP in the first quarter of 2026 from RM21.9 billion or 4.5 per cent of GDP in the corresponding period of 2025
“Hence, the ringgit is expected to remain well supported at around RM3.95 to RM3.96 against the US dollar today,” he said.
At the opening, the ringgit 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.
The ringgit also traded higher against regional currencies.
It strengthened against the Singapore dollar to 3.0949/1026 from 3.0967/0997 previously and appreciated against the Thai baht to 12.1286/1648 from 12.1304/1468.
The local note also 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. — Bernama
Source: ringgit-opens-firmer-on-easing-west-asia-tensions-stronger-economic-outlook
Disclaimer
The views and opinions expressed in this article are solely those of the author and do not necessarily reflect the official stance of Kritik.com.my. As an open platform, we welcome diverse perspectives, but the accuracy and integrity of contributed content remain the responsibility of the individual writer. Readers are encouraged to critically evaluate the information presented.