KUALA LUMPUR: The ringgit jumped 135 basis points to rebound to the 3.96 level against the US dollar at the opening today, supported by improved global risk sentiment amid expectations of a potential second-round negotiation between the US and Iran.

At 8 am, the ringgit appreciated to 3.9600/9715 against the US dollar from 3.9735/9805 at Monday’s close.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said recent developments in the global oil market, following the news that there will be another second-round negotiation between the US and Iran in the near term, have dragged West Texas Intermediate (WTI) and Brent crude oil prices to fall below US$100 per barrel.

"The news sparked hope that an amicable solution could be achieved, although it can also be elusive,” he told Bernama.

On the US dollar, which is deemed a safe-haven currency, Mohd Afzanizam said the two- and 10-year US Treasury yields fell by two basis points to 3.77 per cent and 4.29 per cent, respectively. In the same vein, the US Dollar Index (DXY) declined 0.23 per cent to 98.425 points.

"In that sense, there appears to be a risk-on mode, although that may be quite tentative given the evolving nature of the negotiations.