The ringgit opened higher against the US dollar, supported by the local currency's performance which is close to reaching its strongest level in more than seven years.
The rise was also driven by increased risk appetite as Bank Negara Malaysia (BNM) decided to maintain the overnight policy rate and a weaker US Dollar Index (DXY).
At 9:53 am, the ringgit opened at 3.9670, up 0.90% against the US dollar since opening early Monday trading in the Asian session.
The ringgit last traded at this level on May 24, 2018 when it hit RM3.9797 against the US dollar.
Bank Muamalat Malaysia Bhd Chief Economist, Dr Mohd Afzanizam Abdul Rashid explained that the local currency was supported by an optimistic outlook on the Malaysian economy following BNM's Monetary Policy Committee (MPC) meeting last week.
He also stated that BNM is likely to maintain a stable OPR rate given that the long-term average from July 21, 2005 to date is around RM3.82.
However, the main focus this week will be on the dollar-yen (USDJPY) after the Bank of Japan (BOJ) and the Federal Reserve (Fed) were seen intervening in the foreign exchange market.
This situation occurs as Japan is set to hold a snap election on February 8, thus risking further pressure on the country's fiscal position.
At the opening, the ringgit was traded lower against other major currencies.
It fell against the Japanese yen to 2.5680/2.5748 from 2.5337/2.5361 last Friday, plunged against the euro to 4.7258/4.7377 from 4.6993/4.7034 and weakened against the British pound to 5.4447/5.4584 from 5.4177/5.4224.
The ringgit was also mixed against ASEAN currencies.
It weakened against the Singapore dollar to 3.1348/3.1429 from 3.1302/3.1330 and fell against the Thai baht to 12.8420/12.8858 from 12.8362/12.8544.
However, it jumped against the Philippine peso to 6.74/6.76 from 6.77/6.78 and rose slightly against the Indonesian rupiah to 236.9/237.6 previously.
