The Malaysian ringgit weakened against the US dollar on Monday, pressured by a combination of escalating geopolitical risks and shifting expectations regarding US monetary policy.
Traders are increasingly pricing in the possibility of a Federal Reserve interest rate hike, a development that typically strengthens the greenback and puts downward pressure on emerging-market currencies like the ringgit.
The move reflects broader risk-off sentiment in global currency markets.
Compounding the pressure is the intensifying conflict in the Middle East.
Renewed tensions in the Gulf region have triggered a flight to safety, with investors shifting capital away from riskier assets toward traditionally stable havens such as the US dollar.
This realignment of global currency flows has created a challenging environment for Asian currencies.