The ringgit opened slightly higher against the US dollar in Wednesday's trading session supported by improving market sentiment following signs of peace in the Mideast conflict.
At 10:30 am, the ringgit was trading at 3.9500, up 0.08% against the US dollar since opening early Wednesday in the Asian session.
SPI Asset Management Managing Partner Stephen Innes said the ringgit would continue to strengthen if the ceasefire continues.
He also said that the situation marked Washington's shift from simply easing tensions to more serious dialogue with Tehran.
According to Stephen, the main question now remains whether Iran will be fully involved, as United States (US) President Donald Trump continues to strengthen his military presence in the region.
Meanwhile, Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid explained that developments in Mideast Asia continue to be the main focus as the conflict in Iran enters its fourth week.
He also said the US Dollar Index (DXY) remained below 100 points at 99.43 points as investors worried about the duration of the war and its adverse impact on global growth and inflation.
At the open, the ringgit traded higher against ASEAN currencies.
It rose against the euro to 4.5759/5875 from 4.5835/5899 yesterday, rose slightly against the British pound to 5.2851/2985 from 5.2982/3056 and surged against the Japanese yen to 2.4825/4890 from 2.4916/4954 previously.
The ringgit also traded stronger against ASEAN currencies.
It strengthened against the Singapore dollar to 3.0839/0922 from 3.0909/0955 and was little changed against the Indonesian rupiah to 233.1/233.8 from 233.9/234.3.
It also rose against the Philippine peso to 6.57/6.59 from 6.59/6.61 and rose slightly against the Thai baht to 12.1234/1613 from 12.1373/1613 previously.
