The ringgit opened higher against the US dollar on Friday morning on positive market sentiment towards a possible ceasefire between the United States and Iran, which is expected to ease global geopolitical tensions.
At 10.20am, the ringgit was at RM3.9750, down 0.38% since it opened early Friday in the Asian session.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid expects the ringgit-US dollar pair to move in the range of RM3.95 to RM3.97 throughout today's trading.
Market sentiment was also supported by a 1.04% drop in Brent crude oil prices to $93.31 per barrel after reports of a proposed 60-day ceasefire between the US and Iran began circulating in the market.
Although the report has yet to be officially confirmed, investors are seen reacting positively as the market is increasingly sensitive to prolonged and uncertain geopolitical developments.
Meanwhile, US economic data showed that inflationary pressures remained as the Personal Consumption Expenditure (PCE) inflation rate rose to 3.8% in April from 3.5% the previous month.
In addition, US initial jobless claims also rose to 215,000 last week from 210,000 previously, suggesting the country's labour market is starting to show signs of slowing.
The development caused the US Dollar Index (DXY) to fall 0.21% to 98.997 points, allowing emerging market currencies including the ringgit to strengthen.
However, the ringgit was traded mixed against other major currencies.
The ringgit weakened against the British pound to 5.3447/3527 from 5.3272/3319 previously, weakened against the euro to 4.6323/6392 from 4.6181/6222 and was slightly lower against the Japanese yen to 2.4961/5000 from 2.4947/4970.
The local currency also weakened against the Singapore dollar to 3.1151/1201 from 3.1085/1115 and declined against the Thai baht to 12.2083/2338 from 12.1613/1773.
Meanwhile, the ringgit was little changed against the Indonesian rupiah at 222.7/223.2 and remained stable against the Philippine peso at 6.45/6.46
