The ringgit surged to 4.08 against the US dollar after recording its best performance in almost five years.
This positive performance was supported by growing confidence in the Malaysian economy, thus driving higher demand for the local currency.
At 10:45 am, the ringgit opened at 4.0860, strengthening by 0.10% against the US dollar since opening early Tuesday in the Asian session.
Bank Muamalat Malaysia Bhd Chief Economist, Dr Mohd Afzanizam Abdul Rashid explained that the US dollar weakened after the US Dollar Index (DXY) declined by 0.09% to 98.309 points, thus driving the strengthening of the ringgit.
He also stated that market sentiment is now awaiting the release of November NFP employment data tonight to assess a clearer direction on the United States (US) monetary policy.
At the opening, the ringgit strengthened against other major currencies.
It rose against the Japanese yen to 2.6374/6427 from 2.6410/6444, rose against the British pound to 5.4707/4814 from 5.4793/4860 and gained against the euro to 4.8058/8152 from 4.8064/8123 previously.
The ringgit also traded higher against its ASEAN peers.
It rose against the Singapore dollar to 3.1708/1772 from 3.1746/1787 and edged up against the Thai baht to 12.9826/13.0196 from 13.0201/0422.
It also rose slightly against the Indonesian rupiah to 245.3/245.9 from 245.5/245.9 and rose against the Indonesian peso to 6.92/6.94 from 6.93/6.94 yesterday.
