The ringgit opened higher against the US dollar in early trade today, but its performance was mixed against other major currencies as the market took a cautious stance amid oil price volatility and the ongoing developments in the Strait of Hormuz.
At 10:31am, the ringgit was trading at 3.9500, down 0.03% since it opened early Wednesday in the Asian session.
Bank Muamalat Malaysia Bhd Chief Economist Mohd Afzanizam Abdul Rashid said the ringgit is expected to move in a narrow range as investors await a clearer picture of the situation in the Strait of Hormuz.
At the time of writing, oil prices were still volatile after the UAE withdrew from the OPEC pact.
West Texas Intermediate crude oil fell 0.83 percent to $99.10 a barrel, while Brent crude fell 0.59 percent to $110.60 a barrel.
According to Mohd Afzanizam, the UAE's decision to leave OPEC in May after more than six decades of membership is expected to change the landscape of the global oil and gas industry.
The country is now free to determine its production levels in line with its investments in the sector.
However, for now, market attention is more focused on the supply reduction following the war in Iran which has affected the flow of oil and gas through the Strait of Hormuz.
He also said US data showed that The Conference Board's Consumer Confidence Index rose to 92.8 in April after a ceasefire in the Iran conflict.
However, expectations of a US economic recession in the next 12 months have increased, while consumer plans to buy high-value goods have declined.
In addition, investors will focus on the Federal Open Market Committee's decision tonight to see if policymakers are increasingly concerned about the prospects for economic growth in an environment of still high inflation.
At the opening of trading, the ringgit was traded mixed against major world currencies.
It strengthened against the Japanese yen to 2.4740/4782 from 2.4756/4785 yesterday.
However, the ringgit weakened against the British pound to 5.3394/3482 from 5.3292/3353 and depreciated against the euro to 4.6261/6337 from 4.6189/6242.
Against its ASEAN peers, the ringgit was mostly higher.
It rose slightly against the Singapore dollar to 3.0937/0990 from 3.0943/0983, strengthened against the Thai baht to 12.1484/1759 from 12.1494/1685, was almost unchanged against the Indonesian rupiah at 228.9/229.4, and was stable against the Philippine peso at 6.44/6.45 from 6.44/6.46.
