The ringgit opened strongly against the US dollar on Wednesday, supported by a combination of external factors including the expectation of more accommodative policy stance by the United States Federal Reserve (Fed).
At 9.50am, the ringgit was at 4.1890 at a positive 0.26% against the US dollar since it opened at the beginning of Wednesday trading at the Asian session.
SPI Asset Management Managing Director Stephen Innes said the performance of the ringgit was also supported by the resilient global equity market and signs of trade tensions between Washington and Beijing.
He added that trade -sensitive currencies such as ringgit, softer US revenue combinations, resilient risk appetite and geopolitical relief between the US and China are more supportive.
The US and China on Monday announced the 'Framework' agreement to resolve their dispute over Tiktok, a Chinese -owned application to be under US ownership.
Innes said the Tiktok framework agreement was seen as less effective, but tariff disputes and reciprocal trade measures may be the focus of the next market.
Meanwhile, the ringgit was traded lower than a major bunch of currencies.
It dropped to 2.8591/8798 against the yen from 2.8373/8446 on Friday's cover, weakened to 5.7133/7542 against the British pound from 5.6864/7006, and declined to 4.9660/5.0016 from the euro from 4.9203/9326.
Compared to ASEAN currencies, local currencies are mixed.
It strengthened to 13.2092/3114 compared to the Thai Baht from 13.2317/2703 and increased to 254.4/256.4 compared to Indonesian rupiah from 256.3/257.0.
However, it fell to 3.2800/3041 against the Singapore dollar from 3.2719/2803, and did not change against the Philippine peso at 7.35/7.41 against 7.35/7.37 Friday.
