Kuala lumpur: The ringgit opened firmer against the US dollar on Thursday, bolstered by easing geopolitical tensions in West Asia. At 8 am, the local currency strengthened to 3.9655/9710 against the greenback from Wednesday's close of 3.9675/9715.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid noted a significant easing of crude oil prices following indications from United States President Donald Trump that negotiations between the US and Iran were nearing completion. The West Texas Intermediate and Brent crude prices fell by 0.82 per cent and 5.46 per cent to US$107.77 per barrel and US$105.20 per barrel, respectively.

"This development has raised hopes that the Strait of Hormuz will soon reopen, allowing the free flow of oil, gas, and other goods," Mohd Afzanizam told Bernama. Despite the minutes of the Federal Open Market Committee meeting suggesting that policymakers are inclined to raise interest rates, the US Dollar Index declined by 0.21 per cent to 99.122 points, with inflation expected to remain above the two per cent target for an extended period.

At the opening, the ringgit showed a mixed performance against a basket of major currencies. The local currency depreciated against the British pound to 5.3265/3338 from 5.3089/3143 at Wednesday's close, weakened against the euro to 4.6091/6155 from 4.5975/6022 previously, and eased against the Japanese yen to 2.4954/4991 from 2.4942/4969.

In regional currency trading, the ringgit exhibited varied movements. It weakened against the Thai baht to 12.1723/1963 from 12.1341/1516 and slipped against the Singapore dollar to 3.1027/1072 from 3.0969/1003 previously. Conversely, the local currency appreciated against the Indonesian rupiah to 224.6/225.0 from 224.7/225.0 previously and strengthened against the Philippine peso to 6.42/6.44 from 6.43/6.44 previously.