Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the Malaysian economy is likely to record respectable growth with a consensus estimate of 5.5% for Q1 2026.

“Hence, the ringgit should be well supported in the near-term,” he said, adding that hopes for the second round of talks between the US and Iran continued to dominate market sentiment today.

Meanwhile, IPPFA Sdn Bhd investment strategy director and country economist Sedek Jantan said the higher ringgit is also supported by firm global risk sentiment that has begun to weigh on the greenback.

“Gains in risk assets are providing near-term support to emerging market currencies, including the ringgit, while the Asia Dollar Index also edged higher, signalling modest regional forex strength,” he said.

At 6pm, the local currency rose to 3.9520/3.9560 versus the greenback from 3.9550/3.9600 at yesterday’s close.

At the close the ringgit traded higher against a basket of major currencies.

It strengthened versus the British pound to 5.3506/5.3560 from 5.3614/5.3682 at Wednesday’s close, it gained vis-a-vis the euro to 4.6551/4.6598 from 4.6594/4.6653 yesterday, and increased against the Japanese yen to 2.4848/2.4874 from 2.4890/2.4923 previously.

The local currency traded mixed against its Asean peers.

It climbed versus the Singapore dollar to 3.1069/3.1103 from 3.1095/3.1139 on Wednesday and inched up against the Indonesian rupiah to 230.5/230.9 from 230.7/231.0.

However, the ringgit weakened against the Thai baht to 12.3473/12.3664 from 12.3098/12.3330 yesterday and edged down vis-a-vis the Philippine peso to 6.59/6.60 from 6.58/6.59 previously.