Kuala lumpur: The ringgit opened lower against the US dollar on Tuesday amid elevated US Treasury yields and uncertainty over the US Federal Reserve's interest rate outlook, said an analyst. At 8 am, the local currency eased to 4.0300/0350 against the greenback from last Friday's close of 4.0230/0270.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the 30-year US Treasury bond yield has been persistently rising to 5.25 per cent. This increase comes amid expectations that the Federal Reserve could maintain a cautious stance on interest rates at the upcoming Federal Open Market Committee meeting on September 15-16. Dr Mohd Afzanizam highlighted that Fed chairman Kevin Warsh's recent speech at the Jackson Hole Symposium indicated that inflation remains high while the labor market is healthy, suggesting a potential interest rate hike.

The analyst further explained that this stance appears to contradict the US Treasury Department's aim of lowering long-term bond yields through its buyback plans. This week, market focus will pivot to the release of Nonfarm Payroll (NFP) data, with consensus estimates predicting a recovery of 58,000 jobs in August, following a loss of 23,000 jobs in the prior month.

Meanwhile, Dr Mohd Afzanizam mentioned that the ringgit is expected to remain cautious against the US dollar amid the resumption of military attacks between the US and Iran, which have pushed Brent crude prices higher to US$90.49 per barrel. Consequently, the US dollar-ringgit pair is anticipated to range between 4.02 and 4.04 today.

At the opening, the ringgit traded mostly higher against a basket of major currencies. It strengthened against the British pound to 5.4594/4662 from last Friday's close of 5.4632/4687 and appreciated against the euro to 4.6817/6875 from 4.6828/6874. However, it depreciated against the Japanese yen to 2.5222/5255 from 2.5193/5219.

On the other hand, the local currency traded mostly lower against regional currencies. It fell against the Singapore dollar to 3.1702/1747 from 3.1652/1686 and remained relatively unchanged against the Indonesian rupiah at 227.3/227.8 from 227.3/227.7 on Friday. Nonetheless, it rose against the Thai baht to 12.1525/1738 from 12.2087/2253 and remained flat against the Philippine peso at 6.46/6.47.