KUALA LUMPUR: The ringgit opened higher against the US dollar on Tuesday (June 24) on the rising possibility of military de-escalation in the Middle East as United States (US) President Donald Trump announced a tentative ceasefire between Iran and Israel, said an analyst.

At 8am, the local note rose to 4.2770/2980 against the greenback from Monday's (June 23) close of 4.2915/2980.

The US Dollar Index was down 0.29% to 98.416 points Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that US President Donald Trump has announced that Israel and Iran have agreed to a tentative ceasefire, paving the way for resolving the military conflict.

He opined that traders and investors are moving away from safe-haven currencies as they believe the risk premium due to the Israel-Iran military conflict has somewhat reduced for now.

"Brent crude prices plunged to US$71.48 per barrel after hovering close to US$80 per barrel yesterday as prospects for de-escalation of military conflict are rising.

"As such, ringgit and other emerging market currencies are expected to perform favourably today in view of the positive development in the Middle East," he told Bernama.

At the opening, the ringgit traded lower against a basket of major currencies.

It trended lower against the Japanese yen at 2.9315/9461 from 2.9028/9074 at Monday's close, declined versus the British pound to 5.7932/8216 from 5.7437/7524, and fell against the euro to 4.9605/9848 from 4.9236/9311 previously.

The local note trended mixed against its Asean counterparts.

It advanced vis-a-vis the Indonesian rupiah to 259.3/260.7 from 260.2/260.7 at yesterday's close and gained against the Philippine peso to 7.42/7.46 from 7.44/7.46.

However, it depreciated against the Singapore dollar to 3.3339/3507 from 3.3188/3243 and weakened to 13.0361/1081 from 12.9998/13.0250 versus the Thai baht previously. - Bernama