The ringgit opened lower against the US dollar on Thursday, tracking a rise in the US Dollar Index (DXY), as the market reacted to signs that President Donald Trump may ease his stance on tariff policies.
At 10.20am, the ringgit was at 4.3920, down slightly against the US dollar from its close of 4.3880 at Wednesday's close.
DXY rose 0.95% to 99.857 points, while the two-year US Treasury yield rose five basis points to 3.87%.
Bank Muamalat Malaysia Bhd chief economist Dr Afzanizam Rashid said the market reflected relief when the Trump administration signaled it might reduce tariffs on Chinese imports.
He said the move was seen as an effort to bring China back to the negotiating table, even as uncertainty over trade policy continued to rise.
Accordingly, the US dollar-ringgit may trade in the range of RM4.39 to RM4.40 today.
Currently, the ringgit is strengthening against a basket of major currencies.
It rose against the Japanese yen to 3.0701/3.0796 from 3.0925/3.0959 at Wednesday's close, rose against the British pound to 5.8317/5.8490 from 5.8457/5.8517, and rose against the euro to 4.9805/4.9910 from 5.9805/5.0154.
Against regional currencies, the ringgit is trading mixed.
It strengthened against the Singapore dollar to 3.3478/3.3515 from 3.3523/3.3579, and strengthened against the Thai baht to 13.0922/13.1403 from 13.1251/13.1457.
However, it weakened against the Philippine peso to 7.77/7.80 from 7.75/7.77 and depreciated slightly against the Indonesian rupiah to 260.5/261.5 from 260.0/260.5.
