The ringgit opened lower against the US dollar on Thursday, influenced by cautious sentiment among investors who are still waiting for clearer developments from the talks between the United States and Iran.
At 10:11 am, the ringgit was at 3.9550 against the US dollar, down 0.13% since it opened early Thursday in the Asian session.
According to Bank Muamalat Malaysia Bhd Chief Economist, Dr Mohd Afzanizam Abdul Rashid, the US dollar-ringgit pair is currently trading around RM3.95.
This movement is seen as uncertain in the near term as market sentiment often changes between optimistic and pessimistic depending on current developments.
He also explained that global crude oil prices continue to rise, with West Texas Intermediate (WTI) at $92.96 per barrel while Brent reached $101.69 per barrel.
The increase came as there were no positive developments regarding the reopening of the Strait of Hormuz, putting pressure on market sentiment and the value of the ringgit.
Meanwhile, major US stock markets performed strongly as the S&P 500 index hit a new high.
US Treasury bond yields also rose, reflecting higher inflation expectations, which are likely to prompt the Federal Reserve to maintain tight monetary policy.
In early trade, the ringgit was seen mostly strengthening against several major world currencies.
It rose against the British pound to 5.3389/3456 from 5.3414/3468 at Wednesday's close, and rose against the euro to 4.6293/6352 from 4.6408/6455.
However, the ringgit depreciated slightly against the Japanese yen to 2.4798/4831 from 2.4794/4821.
Against ASEAN currencies, the ringgit's performance was mixed.
It strengthened against the Singapore dollar to 3.1000/1042 from 3.1030/1063 and rose against the Thai baht to 12.2567/2795 from 12.2717/2902.
Conversely, the ringgit weakened against the Indonesian rupiah to 230.2/230.5 from 229.9/230.2, while against the Philippine peso, it remained unchanged at 6.57/6.59 from 6.57/6.58 previously.
