THE ringgit traded around RM4.07 against the US dollar on Tuesday as improving prospects for a US-Iran peace deal eased geopolitical uncertainty and weighed on the greenback.
The US dollar traded at RM4.0720, down 0.005 per cent from the previous session, according to one set of market data, while another placed the exchange rate at RM4.0755, up 0.08 per cent.
The softer dollar came as the US Dollar Index extended its decline for a fourth consecutive session, trading around 101.6 amid growing hopes that diplomatic efforts could avert further military escalation in the Middle East.
Oil prices also retreated sharply, with US benchmark crude trading near US$96 a barrel after falling more than six per cent in the previous session. Brent crude hovered around US$104 after plunging more than seven per cent.
The declines followed remarks by Iranian President Masoud Pezeshkian that his government had received greater authority from the country's supreme leader to pursue peace negotiations.
US President Donald Trump also indicated progress in the talks, while Iranian officials suggested that an agreement remained within reach following three days of Qatar-mediated discussions.
The prospect of a diplomatic resolution has eased fears that Washington could resume military strikes against Iran after the US midterm elections, concerns that had previously driven US crude to multi-week highs and Brent to four-year highs.
The developments come as rising energy costs linked to the conflict place growing political pressure on the Trump administration and the Republican Party during the midterm elections.
Investors are also monitoring the US jobs report and interest rate decisions by central banks in the United Kingdom, Australia, Norway and Sweden this week, while markets continue to price in the possibility of a 25-basis-point Federal Reserve rate increase in December. - November 3, 2026
