The Malaysian ringgit is likely to retest its year-to-date peak versus the dollar thanks to strong fundamentals, according to strategists.

The currency has rallied after sliding 4% in March as the Iran war sapped global risk sentiment. It’s back on track to test resistance at 3.88 per dollar, the level it reached just before the outbreak of the conflict, versus current levels around 3.95. The likes of Loomis Sayles & Co. and Deutsche Bank AG also see the currency continuing to strengthen.