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08.04.202605:01:46UTC+00Ringgit Recovers from 2-Month Lows

The Malaysian ringgit strengthened by more than 1% to around 3.98 per USD, rebounding from two-month lows as global risk sentiment improved and the US dollar weakened broadly. The shift in market mood followed US President Trump’s decision to postpone a potential strike on Iran by two weeks.

The move came after a US–Iran agreement to pause hostilities, under which Washington agreed to refrain from military action in exchange for Tehran’s commitment to restore safe maritime traffic through the Strait of Hormuz, a critical corridor for global oil shipments. The conflict, which began in late February, has since widened into a broader regional confrontation, unsettling global markets and pushing oil prices higher.

Nonetheless, the impact on the ringgit was tempered by Malaysia’s position as a net energy exporter, as well as steady foreign inflows into its manufacturing sector and data-centre projects. Bank Negara Malaysia’s stable policy stance also lent support to the currency, underpinning a growth-friendly outlook amid contained inflation and resilient domestic economic momentum.

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