At 8am, the domestic unit traded at 3.9530/3.9635 against the greenback, compared with 3.9600/3.9635 at Tuesday’s close.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said markets would also focus on the MPC meeting, particularly the accompanying statement.

“The outlook for the second quarter remains intact, although markets are closely watching the impact of escalating tensions in West Asia,” he noted.

According to the bank’s research note, the impact of the conflict in Iran is beginning to be reflected in Malaysia’s inflation. The Consumer Price Index (CPI), which measures overall price levels, rose 1.7% year-on-year to 136.4 points in March 2026, compared with 1.4% in February.

Afzanizam added that concerns over the West Asia crisis continued to weigh on market sentiment.

“Yesterday, the ringgit weakened 0.15% to RM3.9618 against the US dollar. In light of the latest developments, it is likely to appreciate, although gains are expected to be measured,” he said.

At the open, the ringgit traded mixed against a basket of major currencies.

It strengthened against the Japanese yen to 2.5065/2.5133 from 2.5138/2.5163 at Tuesday’s close, but weakened against the euro to 4.6305/4.6428 from 4.6288/4.6329, and edged lower versus the British pound to 5.3626/5.3769 from 5.3622/5.3670.

The local currency was mostly weaker against regional peers.

It rose against the Indonesian rupiah to 226.8/227.5 from 227.2/227.5, but fell against the Singapore dollar to 3.1021/3.1108 from 3.1013/3.1042, weakened versus the Thai baht to 12.1803/12.2187 from 12.1064/12.1223, and eased against the Philippine peso to 6.4240/6.4400 from 6.4300/6.4400 previously.