The ringgit opened slightly higher against the US dollar in early trade on Monday amid cautious sentiment, as traders await clarity on the possible extension of the truce between the US and China.
At 10.20am, the ringgit was at 4.2190, stable since it opened against the US dollar from its close of 4.2195 late on Friday.
Bank Muamalat Malaysia Bhd chief economist Dr Afzanizam Rashid said earlier, the US and the European Union (EU) had agreed to impose a 15% tariff on most EU imports, while most US imports would face zero tariffs under the agreement.
He said the market was also closely watching the upcoming US Federal Open Market Committee (FOMC) meeting scheduled for July 29 and 30, with the consensus expecting no change in the Federal Funds Rate, around 4.25% to 4.50%.
He added that recent developments show that most countries appear accommodative in offering favourable terms to the US. It remains to be seen whether this will effectively narrow the trade balance in the near term.
For now, the market expects the ringgit to remain in a narrow range of RM4.22 to RM4.23 against the US dollar.
At the opening here, the ringgit was mostly traded higher against a basket of major currencies.
It rose against the Japanese yen to 2.8499/2.2863 from 2.8529/2.8565 at Friday's close, and strengthened against the British pound to 5.6600/5.6869 from 5.6786/5.6853. However, it depreciated slightly against the euro to 4.9521/4.9757 from 4.9507/4.9566.
Against regional peers, the ringgit was also stronger.
It rose against the Indonesian rupiah to 258.0/259.3 from 258.5/258.9 on Friday, and rose against the Singapore dollar to 3.2878/3039 from 3.2937/2978.
The local currency also strengthened against the Thai baht to 12.9809/13.0546 from 13.0268/13.0478, and rose against the Philippine peso to 7.37/7.41 from 7.38/7.40 previously.
