The ringgit opened slightly higher against the US dollar earlier this week on the back of weakness in the US currency.
The rise came despite ongoing geopolitical tensions and rising oil prices.
At 10:04am, the ringgit was trading at 3.9340, unchanged by 0.05% against the US dollar since opening early Monday in the Asian session.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid explained that market sentiment is likely to remain cautious amid rising geopolitical risks in the Middle East.
He also noted that the strengthening was also driven by the continued rise in crude oil prices with Brent crude remaining above $100 per barrel.
According to Mohd Afzanizam, concerns over potential disruptions in the Strait of Hormuz and the risk of damage to oil and gas facilities in the region could significantly affect commodity trade flows.
Iran had previously announced that oil shipments through the Strait of Hormuz would only be allowed if cargo was traded in Chinese yuan.
Meanwhile, the market's focus is now on the Federal Open Market Committee (FOMC) meeting scheduled for March 17-18.
Policymakers are expected to present their latest quarterly economic projections during the meeting.
At the opening, the ringgit traded higher against other major currencies.
It rose against the British pound to 5.2057/2262 from 5.2214/2273, surged against the Japanese yen to 2.4630/4729 from 2.4683/4715 and gained against the euro to 4.4940/5117 from 4.5093/5144.
Meanwhile, the ringgit was also trading stronger against ASEAN currencies.
It rose against the Thai baht to 12.1136/1696 from 12.1862/2062 and rose against the Indonesian rupiah to 231.7/232.7 from 232.1/232.5 previously.
It also strengthened against the Singapore dollar to 3.0641/0767 from 3.0730/0767 and the Philippine peso to 6.58/6.61 from 6.59/6.60 previously.
