Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the de-escalation also led benchmark Brent crude oil prices to retreat to US$69.56 (RM295.21) per barrel, as risks to global oil supply appear contained for now.

“Financial markets are responding with a sense of relief, and risk appetite is gradually returning.

“Still, it’s early days. Investors remain cautious amid lingering uncertainties – particularly with the US tariff pause set to expire in early July,” he told Bernama.

“On the domestic front, Afzanizam said Malaysia’s latest consumer price index (CPI) reading of 1.2% reinforces the view that monetary policy remains tight, with real interest rates rising further.

“In summary, market sentiment may stay guarded in the short-term, while policymakers are likely to remain vigilant in balancing growth and stability,” he added.

At 6pm, the local currency rose to 4.2410/4.2465 versus the greenback from yesterday’s close of 4.2915/4.2980.

At the closing, the ringgit traded mostly lower against a basket of major currencies.

It trended lower against the Japanese yen at 2.9256/2.9296 from 2.9028/2.9074 at yesterday’s close, declined versus the British pound to 5.7707/5.7782 from 5.7437/5.7524, but improved against the euro to 4.9225/4.9289 from 4.9236/4.9311 previously.

The local currency trended higher against its Asean counterparts.

It advanced vis-a-vis the Indonesian rupiah to 259.3/259.7 from 260.2/260.7 at yesterday’s close and gained against the Philippine peso to 7.41/7.44 from 7.44/7.46.

The ringgit also appreciated against the Singapore dollar to 3.3130/3.3178 from 3.3188/3.3243 and strengthened to 12.9793/13.0021 from 12.9998/13.0250 versus the Thai baht previously.