Kuala lumpur: The ringgit opened stronger against the US dollar on Wednesday, buoyed by external factors that include expectations of a more accommodative policy stance by the United States Federal Reserve, an analyst reported. At 8 am, the local currency was valued at 4.1840/2140 per dollar, an improvement from Friday's closing rate of 4.1975/2080.

According to BERNAMA News Agency, Stephen Innes, managing director of SPI Asset Management, attributed the ringgit's performance to stable global equity markets and signs of easing trade tensions between Washington and Beijing. He noted, "For a trade-sensitive currency like the ringgit, the combination of softer US yields, resilient risk appetite, and easing geopolitical overhang between the US and China is supportive."

In a recent development, the US and China have announced a 'framework' deal to resolve their dispute over TikTok, involving the Chinese-owned app transitioning to US-controlled ownership. Innes remarked that the TikTok framework deal is perceived less as a technology issue and more as an indication that tariff disputes and reciprocal trade measures might be easing.

Despite its gains against the US dollar, the ringgit traded lower against a range of major currencies. It depreciated to 2.8591/8798 against the Japanese yen from the previous close of 2.8373/8446, weakened to 5.7133/7542 against the British pound from 5.6864/7006, and slipped to 4.9660/5.0016 against the euro from 4.9203/9326.

In contrast, the ringgit showed a mixed performance against ASEAN currencies. It appreciated to 13.2092/3114 against the Thai baht from 13.2317/2703 and improved to 254.4/256.4 against the Indonesian rupiah from 256.3/257.0. However, it declined to 3.2800/3041 against the Singapore dollar from 3.2719/2803 and remained steady against the Philippine peso at 7.35/7.41 compared to Friday's 7.35/7.37.