The Malaysian ringgit closed higher against the US dollar on Friday, according to BusinessToday Malaysia, which attributed the move to easing concerns about oil supply from West Asia. The Star also reported that the ringgit ended the day stronger against the greenback as oil supply worries cooled.
The Malaysian Reserve reported that the currency finished higher against most major currencies, not just the US dollar.
The reports point to a single driver: reduced anxiety over oil supply from West Asia. When fears about supply disruptions ease, currency markets in oil-linked economies such as Malaysia tend to respond, though the source material does not detail the specific events behind the shift.
The timing is notable. The Edge Malaysia reported separately that the ringgit had sunk to a three-month low following a Federal Reserve rate hike, and FXStreet carried analysis from OCBC describing external pressure on the currency while noting scope for a reversal. Friday's move suggests that reversal may be underway, at least in part, though the reporting does not establish how much of the gain stems from oil sentiment versus other factors.
The picture is mixed rather than uniformly positive. The ringgit's advance came against a backdrop of recent weakness tied to US monetary policy, and the sources do not indicate whether the recovery will hold.
What to watch next: whether the ringgit sustains its gains in the coming sessions, or whether external pressure from US rate policy resumes and pulls the currency back toward its recent lows.