The ringgit opened slightly lower against the US dollar on Tuesday as traders remained cautious on the possibility of a rate cut by the US Federal Reserve (Fed).
At 10.10am, the ringgit was at 4.2860, unchanged against the US dollar since it opened in daily trading on Tuesday.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said New York Fed President John Williams and Atlanta Fed President Raphael Bostic had signaled that policymakers would continue to assess incoming data before making any decisions.
The US Dollar Index (DXY) fell 0.66 per cent to 100.426 points, as sentiment in the equity market improved, although some Fed officials were still reluctant to cut rates in the near term.
However, he expected the ringgit to remain supported as market sentiment improved amid tariff negotiations between the US and various countries around the world.
Despite its slightly weaker performance against the US dollar, the ringgit traded mostly higher against a basket of major and regional currencies at the open.
It rose against the Japanese yen to 2.9582/9667 from 2.9596/9650 Monday, appreciated against the euro to 4.8181/8316 from 4.8344/8429, and strengthened against the British pound to 5.7302/7462 from 5.7420/7521.
Against regional peers, it rose against the Singapore dollar to 3.3120/3218 from 3.3135/3195 and strengthened against the Thai baht to 12.9388/9864 from 12.9630/9924.
The local currency, however, depreciated against the Indonesian rupiah to 261.0/261.9 from 260.8/261.4, and depreciated against the Philippine peso to 7.70/7.73 from 7.69/7.71.
