Kuala Lampur:The ringgit opened higher against the US dollar on Wednesday, buoyed by a decrease in Brent crude oil prices and ongoing geopolitical concerns.

According to BERNAMA News Agency, the ringgit rose to 4.0680/0765 against the greenback at 8 am, compared to Tuesday's close of 4.0730/0775. Bank Muamalat Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid noted that the current crude oil prices, with Brent crude below US$100 per barrel at US$99.25, were supporting the foreign exchange market.

The recent meeting between US and Iranian officials during the United Nations General Assembly was described as 'very good' by US President Donald Trump, suggesting potential progress towards a peace deal, although the situation remains uncertain. Additionally, there was no definitive guidance from US Federal Reserve officials regarding the direction of monetary policy.

Dr. Mohd Afzanizam indicated that Federal Funds futures contracts show a likelihood of more than 50 percent for rate hikes in October and December, implying that the market anticipates two more rate increases this year. Consequently, he expects the ringgit to trade within a narrow range.

At the market opening, the ringgit also showed gains against a basket of major currencies. It strengthened against the euro to 4.6566/6664 from 4.6705/6757, advanced against the British pound to 5.4275/4389 from 5.4452/4512, and appreciated against the Japanese yen to 2.5830/5886 from 2.5958/5988.

In relation to ASEAN currencies, the ringgit firmed against the Singapore dollar to 3.1901/1970 from 3.1955/1993 and gained versus the Thai baht to 12.2826/3142 from 12.2847/3035. It also inched up against the Indonesian rupiah to 227.4/228.0 from 227.7/228.0, although it was slightly lower against the Philippine peso at 6.48/6.50 from 6.49/6.50.