Kuala lumpur: The ringgit opened higher against major currencies on Wednesday but remained nearly flat against the US dollar as traders exercised caution amidst ongoing uncertainties over the conflict in West Asia. At 8 am, the local currency stood at 4.0870/0920 against the greenback, barely changed from the previous day's close of 4.0870/0910.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid noted that the uncertainty surrounding peace deal negotiations continues to dominate the market as the United States and Iran have been exchanging attacks for ten days. This geopolitical tension has influenced investor sentiment and expectations of a US interest rate hike, which has caused yields on the two- and 10-year US Treasury notes to rise by five and four basis points to 4.26 percent and 4.63 percent, respectively.

Given the current situation in West Asia, traders are predicted to maintain a cautious approach, with the ringgit expected to trade within the range of RM4.08 to RM4.10 today, Dr. Mohd Afzanizam told Bernama. Despite the flat performance against the US dollar, the ringgit saw gains against a basket of major currencies at the market opening.

The ringgit appreciated against the euro, moving to 4.6596/6653 from 4.6682/6727 at Tuesday's close. It also strengthened against the Japanese yen, reaching 2.5046/5078 from 2.5123/5148, and rose against the British pound to 5.4676/4743 from the previous mark of 5.4868/4922.

In regional trade, the local currency showed a mixed performance. It advanced against the Singapore dollar to 3.1631/1672 from 3.1682/1716 and gained vis-a-vis the Thai baht to 12.1139/1352 from 12.1420/1579 at the previous close. However, it remained flat against the Indonesian rupiah and the Philippine peso at 228.4/228.8 and 6.62/6.63, respectively.