Kuala Lumpur:The ringgit opened marginally higher against the US dollar on Tuesday as investors navigated through cautious market sentiment, focusing on global economic developments and the outlook for US interest rates.

According to BERNAMA News Agency, the ringgit's value improved slightly to 4.0550/0610 against the greenback from Friday's closure of 4.0565/0610. This minor rise occurred after the market was closed on Monday due to the Deepavali replacement holiday.

Bank Muamalat Malaysia Bhd's chief economist, Dr. Mohd Afzanizam Abdul Rashid, highlighted that US inflation data is anticipated closely by investors. Softer data could potentially influence US Treasury yields and the dollar, offering support to the ringgit. Concurrently, Brent crude prices saw a decline of 5.85 percent to US$92.57 per barrel, following US President Donald Trump's suggestion that the conflict with Iran might conclude, alleviating fears of supply disruptions.

The domestic economic scene in Malaysia also plays a role in the ringgit's performance. Mohd Afzanizam noted that local economic indicators, combined with Bank Negara Malaysia's decision to maintain the Overnight Policy Rate at 2.75 percent, are expected to provide a stable environment for the ringgit. He predicted that the ringgit would trade higher against the US dollar, with market sentiments showing signs of improvement and an expected trading range between RM4.05 and RM4.06 for the day.

Despite these developments, the ringgit showed a decline against a selection of major currencies, including the Japanese yen, euro, and British pound, while exhibiting mixed results against its ASEAN counterparts. It weakened against the Singapore dollar and the Thai baht, remained stable against the rupiah, and appreciated slightly against the Philippine peso.