Kuala lumpur: The ringgit opened slightly lower against the US dollar on Monday amid uncertainties over the free flow of vessels through the Strait of Hormuz and the resilience of the United States economy, an analyst said. At 8 am, the local currency slid to 4.0710/0770 against the greenback from 4.0695/0745 at Friday's close.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the fragility of the ceasefire agreement following the ongoing attacks between the US and Iran has kept crude oil prices and US Treasury yields elevated. 'The US Dollar Index (DXY) is currently hovering at 100.952 points. As such, expect ringgit to trade sideways against the US dollar, oscillating around RM4.06 to RM4.08,' he told Bernama.

Mohd Afzanizam further highlighted that this week's focus will be on key US economic data releases, including the consumer price index (CPI), producer price index (PPI), and the University of Michigan's Consumer Sentiment Index. He emphasized that investors will also be monitoring a series of speeches by US Federal Reserve officials for clues on the US interest rate outlook. 'All this will dictate the currency market trend this week,' he said.

Despite its slight depreciation against the US dollar, the ringgit traded higher against a basket of major currencies and its ASEAN peers. It showed strength against the Japanese yen, British pound, and euro. Additionally, the ringgit rose vis-a-vis the Singapore dollar and inched up against the Thai baht. However, the local note was almost flat against the Philippine peso and depreciated slightly against the Indonesian rupiah.