Kuala lumpur: The ringgit opened higher today, climbing to the 3.94 level against the US dollar, supported by improved sentiment on expectations of diplomatic progress following reports of a possible second-round US-Iran talks. At 8 am, the local currency strengthened to 3.9430/9510 against the greenback, from 3.9500/9545 at Tuesday's close.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid noted that the International Monetary Fund (IMF) projected global gross domestic product (GDP) growth to slow to 3.1 percent and 3.2 percent in 2026 and 2027, respectively, after expanding 3.4 percent in 2025. He highlighted that the main risk remains the war in Iran, which could elevate inflationary pressures. While increased defense spending may momentarily boost GDP, it risks diverting resources away from social needs.

The US Dollar Index saw a decline of 0.25 percent to 98.121 points. Amid heightened uncertainties, the ringgit is expected to trade within a narrow range today, as mentioned by Dr. Mohd Afzanizam.

At the opening, the ringgit showed gains against a basket of major currencies. It appreciated versus the euro to 4.6520/6614 from 4.6567/6620 and strengthened against the Japanese yen to 2.4828/4880 from 2.4847/4877 at Tuesday's close. However, it weakened against the British pound to 5.3522/3631 from 5.3495/3556.

In the ASEAN currency market, the ringgit traded mostly higher. It rose against the Singapore dollar to 3.1023/1091 from 3.1053/1091, gained versus the Indonesian rupiah to 230.2/230.8 from 230.6/231.0, and improved vis-a-vis the Philippine peso to 6.58/6.60 from 6.59/6.61 previously. The ringgit, however, declined against the Thai baht to 12.3211/3546 from 12.3183/3397 at the prior day's close.