The Malaysian ringgit opened flat against the US dollar on Tuesday, finding support from robust domestic trade data that helped neutralize the headwinds from heightened global shipping risks.
While the currency remained stable against the greenback, it traded mostly higher against other major currencies, reflecting a nuanced market response to mixed international cues.
This resilience comes as traders continue to price in the ongoing geopolitical pressure on critical trade routes.
Tensions in the Strait of Hormuz and the Red Sea have kept shipping insurance premiums elevated and freight rates volatile, creating a persistent drag on regional currencies exposed to import costs.
The ringgit’s ability to hold its ground suggests that local economic fundamentals are currently outweighing the external shock from disrupted energy flows.
The currency’s performance marks a shift from recent sessions, where the ringgit had closed flat against the dollar as investors digested the latest Federal Open Market Committee minutes. Previously, the currency had seen a modest recovery driven by a shift in sentiment regarding these same geopolitical concerns. The current stability indicates that the market is beginning to normalize around the elevated risk premium associated with Middle Eastern shipping lanes.