Kuala lumpur: The ringgit retreated to the 4.00 level against the US dollar at noon, as risk-off mode dominated market sentiment due to growing scepticism over a ceasefire in Iran after United States (US) President Donald Trump indicated that he would not commit to a deal with Tehran.

According to BERNAMA News Agency, the US Dollar Index (DXY) climbed 0.28 per cent to 99.873 points, maintaining its position as safe-haven demand increased, while US benchmark equities indices fell over one per cent. Bank Muamalat Malaysia Bhd's chief economist Dr Mohd Afzanizam Abdul Rashid provided these insights following the announcement.

The local currency had begun the day at 3.9855 against the greenback. By 12.30 pm, the ringgit reached 4.0075/0105 against the US dollar, marking its lowest level in two months since it stood at 4.0045 on January 23.

Xinhua also reported that global financial markets are being heavily influenced by the ongoing hostilities involving the US, Israel, and Iran. Both Tehran and Tel Aviv launched military strikes on Thursday, amidst growing international concerns about the conflict's significant economic repercussions. However, equities managed to recover briefly after reports indicated that Iran had formally responded to a US truce proposal.

The ringgit also weakened against a range of other major currencies. It fell to 2.5114/5135 against the Japanese yen, slid to 5.3460/3500 against the British pound, and dropped to 4.6243/6277 vis- -vis the euro.

In the context of ASEAN currencies, the ringgit eased to 3.1177/1203 against the Singapore dollar, slipped to 12.1942/2085 versus the Thai baht, edged down to 236.5/236.7 vis-a-vis the Indonesian rupiah, and inched down to 6.64/6.65 against the Philippine peso.