Kuala lumpur: The ringgit opened almost flat against the US dollar on Monday as investors sought shelter in safe-haven assets, with the greenback seen as one of the ways to preserve capital. At 8 am, the local currency eased to 3.9520/9600 against the greenback from 3.9505/9545 at last Friday's close.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid noted that West Texas Intermediate (WTI) and Brent crude prices surged by 7.29% and 6.07% to US$89.96 per barrel and US$95.87 per barrel, respectively, due to the ongoing fluid situation in West Asia. The Strait of Hormuz was briefly closed again after the Iranian government announced its reopening on Saturday.

The US dollar index (DXY) showed an upward trend, increasing by 0.19% to 98.282 points this morning. Dr. Mohd Afzanizam suggested that the ringgit is likely to remain weak for the day, emphasizing concerns regarding the expiration of the current two-week ceasefire in West Asia, which is due to end this week. The pressing issue now is whether the ceasefire can be extended to foster further diplomatic discussions, with the market currently adopting a risk-off stance.

In contrast, the ringgit showed gains against a range of major currencies at the market opening. It strengthened against the British pound, euro, and Japanese yen. However, the local currency exhibited mixed performance against its ASEAN peers, recording gains against the Singapore dollar, while depreciating against the Thai baht and Indonesian rupiah, and remaining flat against the Philippines peso.