At 8am, the domestic unit traded at 3.9540/3.9590 against the greenback compared with 3.9540/3.9575 at yesterday’s close.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said while the market adopted a wait-and-see approach ahead of the MPC meeting, the exchange of fire in the Persian Gulf  between the US and Iranian forces, potentially compromised the ceasefire.

“Escalation in the Middle East has consequently seen global oil benchmark WTI and Brent crude prices jump 4.39% and 5.80% to US$106.42 per barrel and US$114.44 per barrel, respectively.

“Today, the ringgit is expected to depreciate against the US dollar in light of the latest developments. Clearly, market sentiment will continue to revolve around the war in the Middle East and the ensuing oil supply shock, which would exert upward pressure on inflation,” he added.

Meanwhile, the ringgit traded higher against a basket of major currencies.

It rose against the Japanese yen to 2.5151/2.5184 from 2.5186/2.5210 at yesterday’s close, appreciated versus the British pound to 5.3498/5.3565 from 5.3612/5.3660, and strengthened vis-a-vis the euro to 4.6230/4.6289 from 4.6329/4.6370 previously.

The local currency was firmer against regional peers.

It advanced against the Singapore dollar to 3.0963/3.1005 from 3.1019/3.1049 at Monday’s close, gained versus the Thai baht to 12.0740/12.0963 from 12.1460/12.1631, edged up versus the Indonesian rupiah to 227.3/227.6 from 227.3/227.6, but was flat vis-a-vis the Philippine peso at 6.42/6.43.