Kuala lumpur: The ringgit opened nearly unchanged against the US dollar from yesterday's close as markets await the latest decision by Bank Negara Malaysia's (BNM) Monetary Policy Committee (MPC), scheduled for May 7. At 8 am, the domestic unit traded at 3.9540/9590 against the greenback compared with 3.9540/9575 at yesterday's close.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the market adopted a wait-and-see approach ahead of the MPC meeting. Meanwhile, an exchange of fire in the Persian Gulf erupted between United States and Iranian forces, potentially compromising the ceasefire.

The escalation in West Asia has consequently led to a significant rise in global oil benchmark prices. WTI and Brent crude prices jumped 4.39 percent and 5.80 percent to US$106.42 per barrel and US$114.44 per barrel, respectively. Dr Mohd Afzanizam indicated that the ringgit is expected to depreciate against the US dollar in light of these developments, with market sentiment likely to focus on the situation in West Asia and the ensuing oil supply shock, which could exert upward pressure on inflation.

Despite the tensions, the ringgit traded higher against a basket of major currencies. It rose against the Japanese yen to 2.5151/5184 from 2.5186/5210 at yesterday's close, appreciated versus the British pound to 5.3498/3565 from 5.3612/3660, and strengthened vis-a-vis the euro to 4.6230/6289 from 4.6329/6370 previously.

The local currency also showed strength against regional peers. It advanced against the Singapore dollar to 3.0963/1005 from 3.1019/1049 at Monday's close, gained versus the Thai baht to 12.0740/0963 from 12.1460/1631, edged up versus the Indonesian rupiah to 227.3/227.6 from 227.3/227.6, but remained flat vis-a-vis the Philippine peso at 6.42/6.43.