Kuala Lumpur:The ringgit opened slightly higher against the US dollar on Tuesday, buoyed by signs of progress in diplomatic discussions between the United States and Iran.

According to BERNAMA News Agency, the local currency rose to 4.0690/0750 against the dollar at 8 am, compared to Monday's close of 4.0695/0735. Bank Muamalat Malaysia Bhd's chief economist, Dr. Mohd Afzanizam Abdul Rashid, noted that the US-Iran diplomatic talks could potentially lead to the reopening of the Straits of Hormuz.

In conjunction with these developments, Brent crude oil prices saw a significant decline of 8.12 percent, dropping to US$104.21 per barrel. Additionally, the auction for three- and six-month US Treasury bills resulted in lower yields, indicating a reduced likelihood of an interest rate hike. Dr. Mohd Afzanizam commented on the fluid situation in West Asia and the market's focus on the US mid-term election results.

The ringgit showed mixed performance against major currencies. It strengthened against the euro and the British pound, while slightly declining against the yen. Among ASEAN currencies, the ringgit appreciated against the Singapore dollar, remained steady against the Indonesian rupiah and the Philippine peso, but weakened against the Thai baht.