Kuala lumpur: The ringgit closed higher against the US dollar on Friday, driven by cautious market sentiment surrounding ongoing discussions between the US and Iran over the nuclear programme, according to an economist. At 6 pm, the ringgit appreciated to 3.8995/9055 against the greenback, compared to Thursday's closing rate of 3.9045/9125.

According to BERNAMA News Agency, Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, attributed the ringgit's performance to a 10 to 15-day deadline for a nuclear deal set by US President Donald Trump, which has prompted a risk-off mode among investors. This sentiment has led to a rise in Brent crude prices by 0.89 per cent to US$72.30 per barrel. Dr Afzanizam also noted the US government's decision to position its military assets in the Middle East, adding to the market's cautiousness.

The ringgit also strengthened against a range of major currencies by the close of the trading day. It appreciated against the Japanese yen, climbing to 2.5092/5132 from 2.5221/5275 on Thursday. Similarly, it gained ground against the euro, reaching 4.5882/5952 from the previous 4.6073/6168, and improved against the British pound to 5.2511/2591 from 5.2730/2838.

In addition, the local currency performed well against its ASEAN counterparts. It rose against the Singapore dollar to 3.0724/0774 from 3.0817/0882, advanced against the Thai baht to 12.4952/5216 from 12.5196/5521, strengthened against the Indonesian rupiah to 230.8/231.3 from 231.1/231.6, and gained against the Philippine peso, closing at 6.70/6.72 from 6.73/6.75 previously.