Ringgit opens slightly higher amid hopes of US-Iran talks progress

The ringgit opened marginally higher against the US dollar on Tuesday amid signs of progress in diplomatic talks between Washington and Tehran.

At 8am, the local note slightly rose to 4.0690/4.0750 against the greenback from yesterday’s close of 4.0695/4.0735.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said US-Iran diplomatic talks could lead to the reopening of the Straits of Hormuz.

Brent crude oil prices fell significantly by 8.12% to US$104.21 per barrel.

“At the same time, the auction for the three- and six-month US Treasury bills saw their yields lower, suggesting that the odds for a rate hike have been tempered down. 

“Still, the situation in the Middle East is still fluid, and market participants will be observing the US midterm election result,” he told Bernama.

However, Afzanizam expects the ringgit to trade in a narrow range today as market sentiment remains cautious.

Against major currencies, the ringgit traded mostly higher.

The ringgit climbed against the euro to 4.5540/4.5607 from 4.5652/4.5697 at yesterday’s close and rose against the British pound to 5.4561/5.4642 from 5.4621/5.4675 but inched down vis-a-vis the yen to 2.5769/2.5809 from 2.5766/2.5793 previously.

The ringgit performed mixed against its Asean peers.

It increased vis-a-vis the Singapore dollar to 3.1809/3.1858 from the previous close of 3.1825/3.1862 but was flat against the Indonesian rupiah at 224.1/224.5 and the Philippine peso at 6.39/6.41.

The local note slipped versus the Thai baht to 12.0634/12.0920 from 12.0496/12.0661 at yesterday’s close.