The ringgit opened higher against the US dollar on Tuesday on the increased possibility of military de-escalation in the Middle East after United States (US) President Donald Trump announced a temporary ceasefire between Iran and Israel.
At 10am, the ringgit was at 4.2530, up 0.91% against the US dollar from its close of 4.2915 at the end of Monday.
The US Dollar Index fell 0.29 percent to 98.416 points.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said US President Donald Trump had announced that Israel and Iran had agreed to a temporary ceasefire, paving the way for a resolution to the military conflict.
He added that the ringgit and other emerging market currencies were expected to perform favourably today given the positive developments in the Middle East.
At the opening, the ringgit was traded lower against a basket of major currencies.
It fell against the Japanese yen to 2.9315/9461 from 2.9028/9074 at Monday's close, fell against the British pound to 5.7932/8216 from 5.7437/7524, and fell against the euro to 4.9605/9848 from 4.9236/9311 previously.
It rose against the Indonesian rupiah to 259.3/260.7 from 260.2/260.7 at yesterday's close and rose against the Philippine peso to 7.42/7.46 from 7.44/7.46.
However, it fell against the Singapore dollar to 3.3339/3507 from 3.3188/3243 and fell to 13.0361/1081 from 12.9998/13.0250 against the Thai baht previously.
