KUALA LUMPUR: The ringgit continued its upward momentum on Tuesday, closing higher against the US dollar as news of some ships being allowed safe passage through the Strait of Hormuz eased demand for safe haven assets and lifted regional currencies.

At 6 pm, the local currency strengthened to 3.9155/9200 against the greenback from Monday’s close of 3.9260 /9310.

SPI Asset Management managing partner Stephen Innes said the vital shipping route was showing signs of recovery, with some major vessels passing through over the past 24 hours, despite reports suggesting it was on the verge of a complete shutdown.

"A Pakistan-flagged Aframax (ship) cleared the Strait of Hormuz, en route to Karachi, and Iran-linked traffic has picked up meaningfully, with a dozen vessels moving through in the past 24 hours, including a very large crude carrier (VLCC) heading to China. This shift takes the edge off the panic bid in the US dollar and offers some relief for regional currencies,” he told Bernama.

Innes said the easing of ship passage flow in the Strait of Hormuz was a constructive signal that lifted the ringgit, reflecting a market that is recalibrating risk rather than pricing full-scale disruption.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the ringgit has continued to remain resilient despite lingering concerns over oil and gas supplies amid the ongoing conflict in West Asia.