The ringgit opened higher against the US dollar and remained on a strong footing, as lingering uncertainty over US monetary policy weighed on the greenback.
At 10.20am, the ringgit was at 4.2040, down 0.20% against the US dollar since it opened early Tuesday in Asian trading.
Bank Muamalat Malaysia Bhd chief economist Dr Afzanizam Rashid said the US dollar-ringgit pair was expected to remain in a narrow range, hovering around RM4.20 today.
He said US Federal Reserve (Fed) Governor Lisa Cook acknowledged that the labour market was weakening but did not provide rate guidance for the December meeting.
Meanwhile, Fed Governor Stephen Miran, who voted for a 50 basis point cut, described the current monetary policy stance as restrictive.
The US Dollar Index (DXY) remained higher, up 0.07% to 99.871 points in response to the statement.
Based on the ISM survey responses, most businesses were pessimistic, as tariffs have led to higher prices and supply chain disruptions, given limited options to source production inputs domestically.
At the open, the ringgit traded higher against major currencies.
It strengthened against the yen to 2.7157/2.7265 from 2.7230/2.7261 at Monday's close, rose against the British pound to 5.5006/5.5223 from 5.5099/5.5158, and rose against the euro to 4.8244/4.8434 from 4.8344/4.8396 previously.
The local note also traded better against Asean currencies.
It rose against the Singapore dollar to 3.2095/3.2224 from 3.2206/3.2243, strengthened against the Philippine peso to 7.12/7.16 from 7.14/7.15, and rose against the Thai baht to 12.8852/12.9431 from 12.9285/12.9483.
It was little changed against the Indonesian rupiah at 251.2/252.3 from 251.7/252.1 previously.
