KUALA LUMPUR, March 25 — The ringgit opened higher against the US dollar and other major currencies on Wednesday, as risk sentiment improved following potential ceasefire talks between the United States and Iran.

At 8am, the local currency strengthened to 3.9400/9500 against the greenback from Tuesday’s close of 3.9530/9585.

SPI Asset Management managing partner Stephen Innes said the ringgit should begin to skew more positively if the ceasefire narrative extends, as it signals that Washington is shifting from tactical de-escalation toward more serious dialogue with Tehran.

He said the key question remains whether Iran will fully engage, as President Donald Trump continues to reinforce the military presence with additional troops and equipment.

“For now, this remains a headline-driven market where positioning shifts are reactive rather than conviction-led, but it is unlikely to see a sustained or explosive rally until there is something more tangible than rhetoric.

“In other words, the market may price the promise of peace, but it will not fully commit until ink meets paper and the ceasefire evolves into something durable” he told Bernama.

Meanwhile, Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said developments in West Asia continue to take centre stage as the war in Iran entered its fourth week.

He said conflicting signals from Washington about ending the war remain mixed, even as more troops are being deployed to the region.

“The ongoing war in Iran has also led to fuel prices skyrocketing, which can fan inflationary pressures. This has compromised purchasing power among consumers, leading them to review their personal budget,” he said.

Mohd Afzanizam said survey indicators, such as the Purchasing Managers’ Index (PMI) for March 2026, have been generally weak, especially in service-oriented industries.

He said the services PMI index for Australia fell to 46.6 points in March from 52.8 points previously, and similarly, in Japan, India, France, Germany, the United Kingdom and the US were all down in March.

“In addition, the US Dollar Index (DXY) remained below 100 points at 99.43 points as traders and investors were anxious about the duration of the war and the severe impact it may have on global growth and inflation,” he added.

The ringgit opened higher against a basket of other major currencies.

It rose versus the Japanese yen to 2.4825/4890 from 2.4916/4954 at Tuesday’s close, edged up against the British pound to 5.2851/2985 from 5.2982/3056, and appreciated vis-à-vis the euro to 4.5759/5875 from 4.5835/5899, previously.

The local currency also trended higher against Asean currencies.

It strengthened against the Singapore dollar to 3.0839/0922 from 3.0909/0955, inched up versus the Thai baht to 12.1234/1613 from 12.1373/1613, little changed against the Indonesian rupiah to 233.1/233.8 from 233.9/234.3 at Tuesday’s close, and climbed vis-à-vis the Philippine peso to 6.57/6.59 from 6.59/6.61 previously. — Bernama