Kuala lumpur: The ringgit opened mixed against a basket of major currencies on Tuesday, with the US dollar gaining strength amid elevated crude oil prices following the reopening of the Strait of Hormuz. At 8 am, the local currency was trading at 4.0900/0975 against the US dollar, compared to the previous day's close of 4.0885/0930.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid noted that the US dollar index (DXY) is currently 0.27 percent higher at 99.811 points. He also highlighted that US President Donald Trump is rejecting Iran's compensation demand, insisting that Tehran should be accountable for the damage across the region.

Dr. Mohd Afzanizam explained that the news is perceived as positive for the dollar, potentially increasing the likelihood of a rate hike in the upcoming September Federal Open Market Committee (FOMC) meeting. He added that despite weak US jobs data last Friday, which failed to weaken the American currency, the ringgit is expected to remain in range-bound trade due to the conflicting signals.

Meanwhile, the ringgit showed mostly higher performance against a basket of major currencies. It appreciated against the Japanese yen to 2.5696/5746 from 2.5736/5766 at Monday's close, strengthened against the euro to 4.7223/7310 from 4.7247/7299, but eased against the British pound to 5.5260/5361 from 5.5170/5231 previously.

The ringgit also traded mixed against regional currencies. It was firmer against the Singapore dollar at 3.1943/2004 from 3.1961/2002, but weakened against the Thai baht to 12.3921/4204 from 12.3894/4079 at the previous day's close. Additionally, the ringgit remained relatively unchanged against the Indonesian rupiah at 230.3/230.8 compared to 230.2/230.6 previously, and was nearly flat against the Philippine peso at 6.73/6.75 from 6.73/6.74.