Ringgit Rebounds on Fading Safe-Haven Demand

The Malaysian ringgit closed stronger on Friday as demand for the US dollar as a safe-haven asset waned.

According to AmBank Group FX strategist Yim Soon Kah, the weaker greenback was driven by reports that US and Iranian mediators would continue peace negotiations despite recent military escalation.

The market reaction to Bank Negara Malaysia's unchanged overnight policy rate (OPR) was neutral, with no surprises for investors.

However, easing oil prices have contributed to the ringgit's rebound after its recent risk-off weakness.