The ringgit opened slightly higher against the US dollar this morning, supported by high hopes among investors for the ongoing US-China trade talks in London.
At 9am, the ringgit was at 4.2370 against the US dollar, up from 4.2360/4.2420 at Tuesday's close.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said market sentiment remained positive but cautious, in line with the volatile movement of the US dollar index (DXY) between 98.962 and 99.358 last night.
Mohd Afzanizam said that after the negotiations entered their second day, it was a positive development that gave hope that the two countries might reach a middle ground in their agreement.
He also explained that the debate on the "Big, Beautiful Bill" put forward by President Donald Trump was still ongoing among senators, especially regarding the potential elimination of clean energy tax incentives to protect investors and domestic jobs.
The issue will continue to be a hot topic in the eyes of the world as fiscal deficits and government debt are expected to increase.
Meanwhile, the ringgit traded mostly higher against other major currencies.
It rose against the Japanese yen to 2.9200/2.9264 from 2.9270/2.9314 yesterday, and rose against the British pound to 5.7121/5.7243 from 5.7152/5.7233.
The ringgit, however, weakened slightly against the euro at 4.8367/4.8470 from 4.8354/4.8422 previously.
Among ASEAN currencies, the ringgit also rose against the Singapore dollar to 3.2885/3.2957 from 3.2932/3.2981 and strengthened against the Indonesian rupiah to 259.8/260.5 from 260.2/260.7.
It also rose against the Philippine peso to 7.57/7.59 but depreciated slightly against the Thai baht to 12.9664/13.0040 from 12.9712/12.9955 yesterday.
Mohd Afzanizam expects the ringgit to continue trading in a narrow range between 4.23 and 4.24 throughout the day, as the market awaits concrete results from the trade talks.
