Kuala lumpur: The ringgit opened higher against the US dollar on Tuesday, driven by uncertainties in the Strait of Hormuz, which have led to an increase in global crude oil prices, according to an analyst.

According to BERNAMA News Agency, at 8 am, the local currency edged up to 4.0675/0730 versus the greenback from 4.0680/0730 at last Monday's close. Bank Muamalat Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid highlighted that the situation in the Strait of Hormuz is currently the focal point, with crude oil prices such as WTI and Brent rising by 9.42% and 9.35% to US$78.14 per barrel and US$83.12 per barrel, respectively.

Meanwhile, the two- and 10-year US Treasury bonds yielded higher by eight and six basis points to 4.28% and 4.62%, respectively, as inflation is expected to trend higher, reinforcing the view that the US Federal Reserve might raise the policy rate this year. "Such a premise has bolstered the US dollar index (DXY) to 101.276 points," Dr. Mohd Afzanizam noted.

In this context, emerging market currencies, including the ringgit, are expected to be volatile in the near term, with the ringgit-dollar exchange rate likely ranging between 4.07 and 4.10 today. At the opening, the ringgit traded higher against a basket of major currencies, appreciating against the Japanese yen, British pound, and euro.

The ringgit showed mixed performance against ASEAN currencies, rising against the Singapore dollar and Thai baht, but remaining unchanged against the Indonesian rupiah and flat against the Philippine peso.