The ringgit opened higher against the US dollar on improving local market sentiment, supported by positive Bank Negara Malaysia (BNM) statements and expectations of a change in US Fed policy.
At 10am, the ringgit was at 4.2240, down 0.02% against the US dollar since it opened early Tuesday in the Asian session.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said that although the US Dollar Index (DXY) continued to rise amid the ongoing US government shutdown, the trend may not be sustainable.
He added that Philadelphia Fed President Anna Paulson in her recent speech hinted that interest rates should be lowered to a more neutral level as the inflationary impact of tariffs is still under control.
However, DXY support is still less convincing amid the US government shutdown.
Meanwhile, Bank Negara Malaysia (BNM) Governor Datuk Seri Abdul Rasheed Ghaffour said the ringgit could reach RM4 against the US dollar by the end of 2025 with Malaysia's economic outlook looking bright.
Meanwhile, the local currency strengthened against a basket of major currencies.
It rose against the euro to 4.8832/8942 from 4.9006/9041 at Monday's close, strengthened against the Japanese yen to 2.7694/7758 from 2.7775/7796, and improved against the British pound to 5.6292/6419 from 5.6369/6409.
Against Asean currencies, the ringgit was also trading higher.
It appreciated against the Thai baht to 12.9517/9888 from 12.9878/13.0030, rose against the Singapore dollar to 3.2507/2588 from 3.2562/2587, rose against the Philippine peso to 7.25/7.27 from 7.25/7.27 and strengthened against the Indonesian rupiah to 254.7/255.4 from 255.0/255.3.
