The ringgit opened lower against the United States (US) dollar on Tuesday as market sentiment became more cautious following the latest US retaliatory tariff policy adjustment, which will take effect on August 1.
At 10.20 am, the ringgit was at 4.2380, down 0.19% against the US dollar from its close of 4.2310 on Monday.
Bank Muamalat Malaysia Bhd Chief Economist, Dr Mohd Afzanizam Abdul Rashid, said the US Dollar Index (DXY) rose 0.31 percent to 97.480 points after the US government announced that the retaliatory tariff suspension period would end soon.
The tariff rate for Malaysia was increased to 25 percent from the 24 percent previously announced.
He added that the latest developments announced involving several countries such as Laos, Myanmar, Cambodia, Bangladesh and Bosnia, saw a reduction in tariff rates compared to the figures announced in April, while tariff rates on other countries remained unchanged or slightly higher.
Malaysia is reviewing raising the tariff rate to 25% from 24% previously.
The retaliatory measures from the United States are expected to affect market sentiment today, with investors and traders likely to take a more cautious approach and avoid risks.
The ringgit was traded cautiously, likely in the range of RM4.23 to RM4.25 today.
At the market opening, the ringgit was traded lower against most major currencies.
The local unit rose against the Japanese yen to 2.9029/9092 from 2.9091/9155 at Monday's close, but depreciated against the British pound to 5.7691/7807 from 5.7563/7685.
The ringgit also fell against the euro to 4.9700/9800 from 4.9647/9752.
It traded lower against most ASEAN currencies.
The domestic currency rose against the Thai baht to 12.9745/13.0082 from 12.9837/13.0173 at yesterday's close, but was lower against the Singapore dollar to 3.3110/3180 from 3.3096/3172.
The local unit also fell against the Indonesian rupiah to 260.7/261.3 from 260.5/261.2, and was less stable against the Philippine peso to 7.47/7.49 from 7.46/7.48
