The ringgit appreciated against the US dollar in early trade, tracking the US dollar's softness as the market priced in uncertainty ahead of the Aug 1 tariff decision by the US.
At 10am, the ringgit was at 4.2300 against the US dollar, flat since it opened compared to 4.2320 at Monday's close.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said he expected the ringgit to maintain its positive performance today.
However, he stressed that the uncertainty over US tariffs would continue to weigh on market sentiment.
Mohd Afzanizam said the signals from US officials were mixed and uncertain, with US Treasury Secretary Scott Bessent indicating that the Trump administration was more concerned with the quality of the trade deal than its timing.
He added that the signals from US officials were mixed and uncertain, with US Treasury Secretary Scott Bessent indicating that the Trump administration was more concerned with the quality of the trade deal than its timing.
The back-and-forth statements on the tariff plan mean the scope for negotiations is wide open.
In addition, Malaysia's economy performed relatively well in the first half of 2025, and Bank Negara Malaysia's early move to cut the Overnight Policy Rate, coupled with expansionary fiscal policy, should help support Malaysia's gross domestic product growth in the second half.
He added that while the outlook remains challenging, the growth outlook for Malaysia is expected to remain resilient.
At the open, the ringgit was mostly traded more easily against a basket of major currencies.
It fell against the Japanese yen to 2.8638/8789 from 2.8612/8644, and fell against the euro to 4.9371/9628 from 4.9277/9330. However, the ringgit was marginally higher against the British pound, rising to 5.6951/7248 from 5.6954/7015 at Monday's close.
The local currency mostly moved higher against most Asean currencies.
It rose against the Singapore dollar to 3.2969/3146 from 3.2990/3028, and appreciated against the Indonesian rupiah to 258.7/260.1 from 259.2/259.6.
The ringgit fell against the Thai baht to 13.0986/1750 from 13.0754/0954, and appreciated against the Philippine peso to 7.38/7.42 from 7.40/7.41.
