The ringgit opened higher on Tuesday against the US dollar and most major and regional currencies, supported by improved investor sentiment following signs of easing global trade tensions.
At 10.15am, the ringgit was at 4.2340, down 0.14% against the US dollar from its close of 4.2275 on Monday.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the sentiment was led by progress in the US-China trade talks, which are ongoing in Sweden.
He added that the two-day Federal Open Market Committee (FOMC) meeting, which began today, was expected to be unchanged on the Fed Funds Rate.
The economist said attention would also turn to the July Nonfarm Payrolls (NFP) report on Friday, with the market expecting a soft print of 108,000 compared to 147,000 in June.
Mohd Afzanizam highlighted that the ringgit weakened 0.21% against the US dollar on Monday to RM4.2310, amid ongoing talks between Malaysia and the US aimed at avoiding a 25% tariff scheduled for Aug 1.
Putrajaya wants a rate below 20%.
The ringgit is expected to trade between RM4.23 and RM4.24 today.
At the open, the local currency rose against most major currencies, strengthening to 2.8383/8600 against the Japanese yen from 2.8497/8546, the British pound from 5.6720/6814 to 5.6286/6714 and the euro 4.8861/9232 from 4.9331/9412.
It also rose against regional peers, rising to 257.4/259.6 against the Indonesian rupiah, 3.2750/3004 against the Singapore dollar, 12.9626/13.0702 against the Thai baht and 7.37/7.43 against the Philippine peso.
