Kuala lumpur: The ringgit opened slightly higher against the US dollar on Monday despite ongoing cautious sentiment due to escalating geopolitical tensions in West Asia. At 8 am, the local unit rose to 3.9495/9605 against the greenback, compared to Friday's close of 3.9515/9580.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid noted that market sentiment remained wary as the prolonged stalemate between the US and Iran continued to raise concerns over a broader conflict in the region. He emphasized that the recent attack on the United Arab Emirates' nuclear facility suggests a likely prolongation of the war.

Mohd Afzanizam further explained that the closure of the Strait of Hormuz could be a potential consequence, as both the US and Iran might leverage the critical waterway. Despite these tensions, the ringgit showed resilience by trading higher against a basket of major currencies at the opening.

The local note appreciated against the British pound, moving to 5.2572/2718 from 5.2749/2835 at Friday's close. It also strengthened against the euro, reaching 4.5873/6001 from a previous 4.5948/6024, and rose against the Japanese yen, trading at 2.4863/4934 compared to 2.4927/4968.

Regionally, the ringgit advanced against its peers, improving against the Thai baht to 12.0684/1083 from 12.0989/1247, strengthening against the Singapore dollar to 3.0824/0915 from 3.0871/0927, and slightly rising against the Indonesian rupiah to 224.4/225.1 from 224.5/225.0 previously. The currency remained almost unchanged against the Philippine peso at 6.40/6.42, compared to 6.40/6.41 previously.