The ringgit recorded a slight strengthening against the US dollar in today's trading session, driven by increasing market confidence in the progress of the second round of talks between the US and Iran, which is expected to ease tensions in key global oil waterways.
At 10:17 am, the ringgit was at 3.9500 against the US dollar since it opened early Wednesday in the Asian session.
Bank Muamalat Malaysia Bhd Chief Economist Mohd Afzanizam Abdul Rashid said market sentiment now largely depends on the hope that the talks will reopen the Strait of Hormuz, thus reducing the risk of global energy supply disruptions.
He also explained that concerns over inflation driven by geopolitical tensions and rising US Treasury yields continue to put pressure on borrowing costs, with the Federal Reserve (Fed) seen as likely to remain cautious about cutting interest rates in the near future.
According to him, the ringgit is expected to remain in a narrow range against the US dollar between RM3.95 and RM3.97 in today's trading.
In the energy market, West Texas Intermediate (WTI) and Brent crude oil prices each remained below $100 a barrel after recording declines.
WTI fell 0.58 percent to $90.76, while Brent declined 0.36 percent to $94.59.
At the opening of trading, the ringgit was traded mixed against major world currencies.
It weakened against the British pound to 5.3627/3708 from 5.3614/3682 at Wednesday's close, and depreciated against the euro to 4.6649/6720 from 4.6594/6653.
However, the ringgit strengthened against the Japanese yen to 2.4879/4918 from 2.4890/4923 previously.
As for ASEAN regional currencies, the ringgit also showed mixed performance.
It rose against the Singapore dollar to 3.1093/1143 from 3.1095/1139, strengthened against the Indonesian rupiah to 230.4/230.9 from 230.7/231.0, and rose against the Philippine peso to 6.57/6.59 from 6.58/6.59.
However, the ringgit weakened against the Thai baht to 12.3415/3676 from 12.3098/3330 at the previous close.
