KUALA LUMPUR: The ringgit extended its upward momentum, opening higher against the US dollar for a third consecutive day on Thursday, as market sentiment continued to hinge on prospects of a ceasefire between the United States and Iran.

At 8 am, the local currency strengthened to 3.9550/9760 against the greenback from Wednesday’s close of 3.9620/9670.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the ringgit traded steadily against the greenback as the market awaits the eventual outcome of possible US-Iran talks.

"Market participants are nevertheless still wary whether the war will end soon, while globally, countries are grappling with rising fuel prices,” he told Bernama.

Mohd Afzanizam said Brent crude oil price was 1.21 per cent lower at US$103.23 per barrel, while the spot gold prices inched up 0.68 per cent to US$4,506 per troy ounce.

"Additionally, US equities were slightly higher while the US Dollar Index (DXY) continues below the 100-point level,” he said.

Meanwhile, SPI Asset Management managing partner Stephen Innes said fears are growing in the currency market amid rising speculation of a US move on Kharg Island to seize control of Iranian oil flows.