Kuala lumpur: The ringgit opened higher against the US dollar on Wednesday, buoyed by a softer greenback and easing US Treasury yields, as noted by an analyst.

According to BERNAMA News Agency, at 8:04 am, the local currency improved to 4.0380/0445 against the greenback, compared to Monday's close of 4.0405/0440. This shift followed a market closure on Tuesday in observance of Prophet Muhammad's birthday. Dr. Mohd Afzanizam Abdul Rashid, the chief economist at Bank Muamalat Malaysia Bhd, highlighted the significance of long-term US Treasury bond yields, pointing out that the 30-year US Treasury securities yield had dipped by six basis points to 5.17 percent.

Reports suggest that the US Treasury Department might utilize the Treasury General Account at the Federal Reserve to fund its buyback program. As a result, the US Dollar Index (DXY) experienced a 0.10 percent decrease, slipping to 98.905 points. Dr. Mohd Afzanizam stated that the ringgit could receive robust support, given the US authorities' apparent aversion to a higher interest rate climate.

There remains uncertainty regarding the US Federal Reserve's forthcoming policy actions. Consequently, market participants are keenly anticipating US Fed Chair Kevin Warsh's address at the Jackson Hole Symposium this week.

At the start of trading, the ringgit showed mixed performance against a basket of major currencies. It marginally improved against the Japanese yen to 2.5360/5402 from Monday's closing of 2.5380/5402 but decreased against the British pound and the euro, falling to 5.5099/5187 and 4.7140/7215, respectively.

The ringgit's performance against regional currencies was more favorable. It strengthened against the Indonesian rupiah, Philippine peso, and Thai baht but saw a slight decline vis- -vis the Singapore dollar, moving to 3.1810/186 from 3.1805/1835 on Monday.