Kuala lumpur: The ringgit opened higher against the US dollar on Tuesday as peace negotiations in West Asia showed signs of advancement, an analyst reported. At 8 am, the local currency appreciated to 4.1440/1505 against the greenback, compared to 4.1465/1500 at the previous day's close.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd's chief economist Dr. Mohd Afzanizam Abdul Rashid noted that the US government has permitted Iran to sell oil in the global market, indicating positive developments in the peace talks. "Consequently, WTI and Brent crude prices are currently at approximately US$74.29 and US$77.90 per barrel, respectively. Traders are navigating the potential for reduced oil prices and inflation but remain uncertain regarding potential rate hikes by the US Federal Reserve (Fed)," he stated today.

Domestically, Dr. Mohd Afzanizam commended the Ministry of Finance's recent decision to rationalize diesel subsidies as credit-positive. The new mechanism, which uses MyKad to distribute diesel subsidies, could lead to RM2 billion in savings. "This initiative demonstrates the government's proactive approach to current challenges, while also considering the impact on the rakyat. I expect the ringgit to remain relatively stable today," he added.

At the market's opening, the ringgit exhibited mixed performance against a range of major and regional currencies. It gained strength against the euro, improving to 4.7345/7419 from 4.7506/7547 at Monday's close, but weakened against the British pound to 5.4887/4973 from 5.4850/4896. It remained stable against the Japanese yen at 2.5648/5690 compared to 2.5635/5658.

In relation to ASEAN currencies, the ringgit appreciated against the Singapore dollar, moving to 3.2030/2085 from 3.2069/2098, and climbed against the Thai baht to 12.5637/5899 from 12.5919/6075. It was almost unchanged against the Indonesian rupiah at 232.2/232.7 from 232.3/232.6, and remained steady against the Philippine peso at 6.78/6.79 from the previous day's close.