The ringgit opened mostly higher against major world currencies today, but was slightly weaker against the US dollar as investors remained cautious on the ongoing negotiations between the US and Iran.
At 10.05am, the ringgit was trading at 3.9690, down 0.23% since it opened early Thursday in the Asian session.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said uncertainty over the Iran conflict remained the main factor influencing market sentiment even though global stock markets such as those in the US continued to record new highs.
According to him, the market received mixed signals when Iran's official news agency reported that negotiations were going well, but US President Donald Trump was still issuing aggressive statements, especially regarding the Strait of Hormuz and control of the world's vital oil route.
At the same time, investors were also concerned about the risk of rising inflation in the US, which could force the US Federal Reserve (Fed) to raise interest rates.
However, market sentiment was still supported by positive corporate earnings performance and optimism over artificial intelligence (AI)-related investments.
In the oil market, West Texas Intermediate (WTI) crude oil prices rose 1.40% to $89.92 per barrel, while Brent crude oil fell 5.31% to $94.29 per barrel.
Meanwhile, the US Dollar Index (DXY) was around 99.21 points, up a slight 0.04%.
Dr Afzanizam expected the ringgit-US dollar pair to move around RM3.95 to RM3.97 today.
At the opening of trade, the ringgit strengthened against the Japanese yen to 2.4859/4925 from 2.4917/4947 when it closed on Tuesday.
The ringgit also rose against the euro to 4.6089/6205 from 4.6172/6225 and rose against the British pound to 5.3217/3351 from 5.3470/3530 previously.
The local currency was also higher against the Thai baht to 12.1445/1818 from 12.1485/1675 at Tuesday's close, but depreciated against the Singapore dollar to 3.1041/1121 from 3.1038/1075.
Meanwhile, the ringgit was unchanged against the Philippine peso and Indonesian rupiah at 6.44/6.46 and 222.8/223.5 respectively.
