Ringgit extends gains against greenback amid softer oil prices

2026-03-18 - 11:21

KUALA LUMPUR: The ringgit made further gains today, closing slightly higher against the US dollar amid softer crude oil prices following strategic petroleum reserve (SPR) releases. At 6pm, the local currency inched up to 3.9145/3.9205 versus the greenback from yesterday’s close of 3.9155/3.9200. SPI Asset Management managing partner Stephen Innes said the SPR-related flows helped anchor crude oil expectations and ease energy price volatility. “At the same time, improving global risk sentiment is pulling funds back into higher beta currencies, with the ringgit moving alongside other currencies such as the Australian dollar as investors trimmed defensive US dollar longs. “Therefore, the combination of softer oil prices and a better risk tone was driving the ringgit higher, and as long as that backdrop holds, the ringgit should stay supported in the near-term,” he told Bernama. Meanwhile, Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the local currency continued to be well supported amid the uncertainties over the war in West Asia. He said investors were generally cautious ahead of the US Federal Open Market Committee (FOMC) meeting tonight. “It would be interesting to see how the FOMC members will describe the current situation (the war on Iran) and how it has caused higher gasoline and diesel prices in the US economy,” he said. Afzanizam also noted that the weakened US labour market is making the case for monetary easing a compelling policy response. According to him, the latest nonfarm payrolls print showed US employers shed 92,000 jobs in February 2026 while the Labour Force Participation Rate (LFPR) was on a decline for three months in a row to 62% during February. The ringgit was softer against a basket of other major currencies. It slipped versus the Japanese yen to 2.4627/2.4668 from 2.4603/2.4632 at yesterday’s close, eased against the British pound to 5.2290/5.2370 from 5.2205/5.2265 yesterday, and depreciated vis-à-vis the euro to 4.5166/4.5235 from 4.5063/4.5115. The local currency traded mostly lower against Asean currencies. It edged up versus the Thai baht to 12.0878/12.1130 from 12.0957/12.1167 at yesterday’s close. However, the ringgit was slightly lower against the Singapore dollar at 3.0668/3.0718 compared to 3.0635/3.0673 yesterday, softened vis-à-vis the Indonesian rupiah to 231.0/231.6 from 230.3/230.7 at the previous close, and fell versus the Philippine peso to 6.57/6.59 from 6.54/6.56.