Ringgit holds firm against major currencies despite stronger US dollar and West Asia tensions | Business

THE ringgit opened mixed against regional currencies but remained broadly firmer against several major global currencies today as investors weighed stronger-than-expected United States employment data against rising geopolitical uncertainty linked to stalled US-Iran negotiations.

At 8am, the local currency edged slightly lower against the US dollar, trading at 3.9755/9855 compared with Tuesday’s close of 3.9745/9785.

Market analysts said the modest weakness reflected renewed support for the greenback following fresh indications that the American labour market remained resilient despite broader economic uncertainties.

Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) continued to strengthen after labour market figures exceeded expectations.

“The US Dollar Index appears to be gaining strength, rising 0.14 per cent to 99.327 points following higher-than-expected labour market data,” he said.

According to Afzanizam, the latest weekly Automatic Data Processing (ADP) employment figures showed payroll growth increasing to 42,250 from 33,000 previously, reinforcing expectations that the Federal Reserve may maintain a cautious approach towards monetary easing.

He added that geopolitical risks linked to the ongoing deadlock in negotiations between Washington and Tehran were also contributing to sustained demand for the US dollar as a safe-haven asset.

“In view of the ongoing stalemate in the US-Iran negotiations and concerns over higher global inflation, the US dollar is expected to remain well supported,” he told Bernama.

“On that note, expect the ringgit’s sideways trend to persist today,” he added.

Despite pressure against the greenback, the ringgit strengthened against most other major currencies during early trading.

The local currency appreciated against the British pound to 5.3248/3382 from 5.3282/3336 at Tuesday’s close and also strengthened against the euro to 4.6140/6256 from 4.6180/6226 previously.

However, it slipped marginally against the Japanese yen to 2.4995/5060 from 2.4980/5006.

Against regional currencies, the ringgit posted mixed performance.

It strengthened against the Thai baht to 12.1541/1918 from 12.1719/1898 and also improved against the Singapore dollar to 3.1003/1083 from 3.1022/1055 previously.

The Malaysian currency, however, weakened slightly against the Indonesian rupiah to 224.5/225.2 from 224.4/224.8 and depreciated against the Philippine peso to 6.44/6.46 from 6.43/6.45 previously.

Currency traders said investors remain cautious amid uncertainty surrounding the trajectory of US interest rates, persistent inflationary concerns and ongoing geopolitical tensions across West Asia, all of which continue to shape sentiment in global foreign exchange markets. – May 20, 2026